Nvidia, the world’s most valuable chipmaker, delivered another quarter of soaring sales driven by artificial intelligence, but investor enthusiasm cooled as the company acknowledged fresh risks to its business in China.
The company forecast third-quarter revenue of $54 billion, slightly above Wall Street estimates of $53.1 billion. Crucially, that outlook excludes any contribution from sales of its high-end H20 chips to China, underscoring the growing impact of U.S.–China trade tensions on global technology leaders.
CEO Jensen Huang said he expects permission to restart shipments after striking a deal with President Donald Trump to pay commissions to the U.S. government. Yet without formal rules in place, and with uncertainty over whether Beijing might discourage purchases, Nvidia is holding back China sales from its forecast. If those shipments do resume, Nvidia estimates an additional $2–5 billion in revenue could flow into the current quarter.
Shares fell 3.2% in after-hours trading, erasing roughly $110 billion in market capitalization, as investors weighed the geopolitical risks against Nvidia’s otherwise stellar growth trajectory.
