Nvidia chief executive Jensen Huang has stressed the importance of the China market for its AI chips (Roy Rochlin) <\/p>\n
AI powerhouse Nvidia reported quarterly earnings Wednesday that beat expectations, but shares slipped amid concerns about an AI chip spending bubble and the company’s stalled business in China.<\/p>\n
The California-based firm posted a profit of $26.4 billion on record revenue of $46.7 billion in the recently ended quarter, driven by intense demand for chips from major tech companies powering AI datacenter computing.<\/p>\n<\/p>\n
However, while revenue increased significantly year-over-year, Nvidia’s Data Center revenue declined 1 percent from the previous quarter.<\/p>\n
The drop was driven by a $4 billion decrease in sales of H20 chips\u2014specialized processors the company designed for the Chinese market, according to the earnings report.<\/p>\n
For the current quarter, Nvidia projected $54 billion in revenue but said its forecast assumes no H20 sales.<\/p>\n
Nvidia’s high-end GPUs remain in hot demand from tech giants building data centers for artificial intelligence applications. However, investors are questioning whether the massive AI investments are sustainable.<\/p>\n
“The data center results, while massive, showed hints that hyperscaler spending could tighten at the margins if near-term returns from AI applications remain difficult to quantify,” said Emarketer analyst Jacob Bourne.<\/p>\n
“At the same time, US export restrictions are fueling domestic chipmaking in China.”<\/p>\n
Nvidia shares fell slightly more than 3 percent in after-market trading.<\/p>\n
The earnings report comes amid market worries about an AI spending bubble that could burst and hurt the chip giant’s fortunes.<\/p>\n
Nvidia serves as a bellwether for the AI market and became the first company to reach $4 trillion in market value last July.<\/p>\n
Earlier this month, President Donald Trump confirmed that Nvidia would pay the United States 15 percent of its revenues from sales of certain AI chips to China.<\/p>\n
Speaking to reporters at the White House, Trump called Nvidia’s H20 chips “obsolete,” despite their previous targeting under export restrictions.<\/p>\n
Beijing has responded by expressing national security concerns about Nvidia chips and urging Chinese businesses to rely on local semiconductor suppliers instead.<\/p>\n
Nvidia developed the H20\u2014a less powerful version of its AI processing units\u2014specifically for export to China to address US concerns that its top-tier chips could be used for weapons development or AI applications in the rival nation.<\/p>\n
gc\/arp<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia chief executive Jensen Huang has stressed the importance of the China market for its AI chips (Roy…\n","protected":false},"author":3,"featured_media":180745,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[691,22265,738,1671,5005,66748,80545,158,67,132,68],"class_list":{"0":"post-180744","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-ai-applications","10":"tag-artificial-intelligence","11":"tag-nvidia","12":"tag-president-donald-trump","13":"tag-quarterly-earnings","14":"tag-roy-rochlin","15":"tag-technology","16":"tag-united-states","17":"tag-unitedstates","18":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115102883658560501","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/180744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=180744"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/180744\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/180745"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=180744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=180744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=180744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}