These Are Nvidia's 2 Biggest Risks -- And Neither Are China
Briefly

Nvidia delivered record Q2 revenue of $46.7 billion and earnings per share that beat expectations, driven by strong demand for Blackwell and Hopper AI chips. Data center revenue reached $41.1 billion, up 56% year-over-year, narrowly missing the $41.2 billion consensus and potentially reduced by as much as $8 billion from forgone H20 shipments to China due to an export ban. Nvidia issued Q3 guidance of $54 billion, exceeding forecasts. Shares fell on market focus on China restrictions, while two larger risks to future growth remain overlooked.
Nvidia ( NASDAQ:NVDA) unveiled its second-quarter earnings yesterday, showcasing a blockbuster performance that solidified its AI dominance. The artificial intelligence (AI) chipmaker reported a staggering $46.7 billion in revenue, topping Wall Street's expectations, with earnings per share also beating forecasts. Despite a slight $41.1 billion data center revenue miss against the consensus $41.2 billion, Nvidia's Q3 guidance of $54 billion soared past projections, signaling it is still producing robust growth.
Yet, the market fixated on the absence of H20 chip sales to China due to export restrictions, sending shares down 5% in after-hours trading and NVDA stock is off almost 2% premarket. This China-centric narrative has clouded investor sentiment, but it's a distraction. While geopolitical hurdles loom, the market is missing the real risks Nvidia faces, which could pose far greater threats to its meteoric rise.
Read at 24/7 Wall St.
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