Nvidia has released its earnings report, but the outlook for future chip sales in China remains uncertain.
On Wednesday, Nvidia announced its fiscal second-quarter earnings, exceeding revenue and earnings expectations with sales of $46.74 billion and an earnings per share (EPS) of $1.05.
The company’s forecast for the third quarter, however, is less optimistic, as it does not account for any H20 chip sales in China, a crucial market for the brand.
CFO Colette Kress indicated that Nvidia is waiting for a formal decision regarding the proposed 15% remittance that the White House wants Nvidia and AMD to pay on chip sales to China. “We are prepared to ship between $2 to $5 billion worth of H20 chips,” she stated.
“We are still navigating the geopolitical challenges between governments and companies attempting to secure their purchases,” Kress explained.
Nvidia revealed a revenue range for the upcoming quarter between $52.9 billion and $55.1 billion, slightly above the anticipated $53.46 billion, though some analysts expect figures closer to $60 billion.
During the earnings call, Jensen Huang highlighted the significance of the Chinese market for AI research, stating that around 50% of global AI researchers are located there. “Thus, it is vital for American tech firms to access that market,” he asserted.
