"Nvidia's ( NASDAQ:NVDA ) second-quarter earnings report should have been a cause for celebration. The company posted a record $46.7 billion in revenue, a remarkable 56% year-over-year increase, fueled by skyrocketing demand for its AI accelerators. Yet, the market responded with a collective frown. Investors were rattled by the absence of H20 chip sales to China due to U.S. export restrictions and a perceived slowdown in data center growth, leading to concerns that Nvidia's $4 trillion valuation might be overblown."
"The narrative of a China sales collapse doesn't tell the whole story. While Nvidia reported zero H20 chip sales to China in Q2 due to U.S. export curbs, it still generated an impressive $2.8 billion in revenue from the region. This figure stems from non-restricted products like data center hardware, gaming GPUs, networking infrastructure, and robotics compute - a significant jump from the $900 million it generated in Q1. This shift highlights the unrelenting demand for Nvidia's technology, even under trade constraints."
Nvidia posted record second-quarter revenue of $46.7 billion, a 56% year-over-year increase driven by strong demand for AI accelerators. The stock fell 4% after investors reacted to zero H20 chip sales to China due to U.S. export restrictions and a perceived slowdown in data center growth, prompting concerns about a $4 trillion valuation. Despite H20 export curbs, Nvidia still generated $2.8 billion from China through non-restricted products, up from $900 million in Q1. Demand remained strong across data center hardware, gaming GPUs, networking infrastructure, and robotics compute, suggesting continued growth and potential undervaluation.
Read at 24/7 Wall St.
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