"Nvidia forecast third-quarter revenue above Wall Street estimates on Wednesday, helped by robust demand for its artificial intelligence chips from cloud providers expanding infrastructure to power generative AI technology. The AI market bellwether expects revenue of $54 billion, plus or minus 2%, in the third quarter, compared with analysts' average estimate of $53.14 billion, according to data compiled by LSEG. The company said it has not assumed any shipments of its H20 chips to China in the outlook."
"Still, demand has surged for Nvidia's advanced chips that can speedily process the large amounts of data used by generative AI applications as businesses race each other to dominate the new technology. Big Tech companies including Meta Platforms and Microsoft have been spending liberally to support their AI ambitions, and Nvidia is the biggest beneficiary, with a significant chunk of this spending funneled toward its chips."
Nvidia forecast third-quarter revenue of $54 billion, plus or minus 2%, above analysts' average estimate of $53.14 billion, driven by strong demand for artificial intelligence chips from cloud providers expanding generative AI infrastructure. The company did not assume any shipments of its H20 chips to China in the outlook and reported no H20 sales to China-based customers in the second quarter. Shares fell 2.5% in extended trading but have gained more than a third in 2025, outpacing the S&P 500. About half of $41 billion in data center revenue came from large cloud service providers. Big Tech spending from firms such as Meta and Microsoft has funneled significant demand toward Nvidia's chips. Nvidia agreed to pay the U.S. government 15% of some China revenue under an unprecedented deal with President Donald Trump.
Read at Fast Company
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