Nvidia Posts Strong Q2 Sales on Rising Demand for AI Chips Amid China Market Uncertainty
Nvidia Corporation reported solid financial results for its fiscal second quarter ended July 27, 2025, underscoring robust global demand for artificial intelligence (AI) chips despite ongoing uncertainty over China sales regulations.
The semiconductor giant posted revenue of $46.7 billion, representing a 6% increase from the previous quarter and a 56% jump compared to the same quarter last year. Earnings per share (EPS) came in at $1.05, beating analyst expectations. Nvidia’s data center segment, led by its Blackwell AI chips, saw a 17% sequential growth, demonstrating continued strength in AI-related product lines.
However, the company did not provide sales guidance specific to China for the next quarter, reflecting regulatory complexities. Nvidia confirmed it did not sell any H20 AI chips into China during Q2 but distributed some units to other international customers. Nvidia’s Chief Financial Officer, Colette Kress, pointed to ongoing geopolitical tensions as a factor creating ambiguity in the Chinese market: “We’re still waiting on several of the geopolitical issues going back and forth between the governments and the companies trying to determine their purchases and what they want to do,” she said.
The Biden administration has proposed a 15% remittance fee on chip sales to China, which Nvidia and AMD must address before resuming shipments of H20 chips, the latest generation of AI accelerators. Nvidia expressed readiness to ship between $2 billion and $5 billion worth of H20 chips once regulatory clarity is achieved.
Looking ahead, Nvidia forecasted third-quarter revenue in a range of $52.9 billion to $55.1 billion, slightly below some analyst estimates that approached $60 billion. Despite this, the strong quarterly growth and AI chip demand signals Nvidia’s continued leadership in the fast-evolving AI hardware race.
Market reaction to the earnings was mixed; while revenues exceeded expectations, concerns over the China market weighed on Nvidia’s stock price. The uncertainties highlight the growing influence of geopolitical factors on global semiconductor supply chains, especially in strategic sectors such as AI chips.
In summary, Nvidia’s fiscal Q2 results reflect significant demand propelled by AI technologies even as regulatory and geopolitical challenges in China create caution in near-term forecasts.