Nvidia The shares fluctuated on Thursday while investors digested the last report on the company’s profits, which reported a high request for AI, but gave little clarity on China.
Sales jumped 56% in the quarter at 46.74 billion dollars, which was about $ 46.06 billion in Wall Street, according to LSEG. The company declared a profit adjusted per share of $ 1.05, exceeding $ 1.01 per share estimated by analysts.
The better than expected results have been darken by concerns about the future of Nvidia in China.
“There was more noise around this quarter and advice and what is implicit that I never remember on an Nvidia district, not to mention any other Megacap technology company,” said Gene Munster by Deepwater Management. “Of course, a large part of this noise is linked to all the mechanisms of China.”
In April, the Trump administration prevented Nvidia from selling its h20 chip on the market.
In August, the CEO of Nvidia, Jensen Huang, concluded an agreement with President Donald Trump to restart sales in China by agreeing to give 15% of sales in the region to the government. This agreement was not finalized.
The market could be an opportunity of $ 50 billion for Nvidia, increasing by 50% per year, said Huang during a call with analysts on Wednesday, while adding that there is a “real possibility” that Nvidia can sell its advanced Blackwell processor.
But the fate of his H20 chip, which was made specifically for China, remains in the air.
Management said NVIDIA could be shipped between $ 2 billion and $ 5 billion in H20 income during the third quarter if the geopolitical environment allows.
Nvidia said it expects this quarter to be $ 54 billion, more or less 2%, although this number does not include H20 shipments in China. Analysts expected revenues of $ 53.1 billion, according to LSEG.
Income from the $ 41.1 billion data center in the second quarter failed estimates for the second consecutive period, but still increased by 56% compared to the previous year. The segment increased by 5% compared to the first quarter, slowing down to the previous quarter when the income from the data center increased by 10%.
For Nvidia bulls, there were still many reasons of optimism.
During a post-benefit call conference with investors, Huang said that AI has made “enormous progress” in the past year and that the construction of AI infrastructure is still in its early days.
“While the AI revolution has entered the strength, as the AI race is now underway, CAPEX expenses have doubled at $ 600 billion per year,” he said. “Five years ago by the end of the decade, and $ 600 billion represent only the first four hyperscalers.”
Huang projected 3 dollars to $ 4 billions of dollars in IA infrastructure spending at the end of the decade.
“The opportunity to come is immense,” he added.
Reference analysts said in a note on Thursday that Nvidia directives were “only modest upwards a high street consensus”, but overall, the report showed “solid sequential and annual growth”.
“We believe that NVIDIA’s results are in accordance with its previous objectives and in no case indicate a slowdown in AI interest or investments on an industry level,” analysts wrote, who have a purchase note on NVIDIA shares, in a note to customers.
The results have shown that the “Playbook remains the same” for NVIDIA, JPMorgan analysts wrote.
“A solid rhythm and an increase with several levers at stake to drive up, in the context of a multi -year growth track for IA infrastructure expenses, with the NVDA in our opinion continuing to enter a major majority of incremental spending (as it has done in recent years),” said analysts.
NVIDIA Action table at 1 day.
