August 28, 2025 — Nvidia once again posted blockbuster results in the second quarter, but investor reaction was less enthusiastic as concerns over China overshadowed the company’s record-breaking numbers.
Strong Financial Results
The chipmaker reported revenue of $46.74 billion, up 56% compared with last year, while net income jumped 59% to $26.4 billion. Both figures came in ahead of Wall Street forecasts, reinforcing Nvidia’s position at the center of the artificial intelligence boom.
Data center revenue, Nvidia’s largest business segment, rose to $41.1 billion. While impressive, the figure fell slightly short of market expectations, giving investors pause.
Stock Market Reaction
Despite the strong results, Nvidia’s stock dropped about 3% in after-hours trading. Analysts pointed to the company’s sky-high valuation and lingering uncertainty surrounding Chinese sales as reasons for the pullback.
China and the H20 Chip
A key factor in the cautious outlook is the H20 chip, designed for the Chinese market but currently excluded from forecasts due to ongoing trade restrictions and U.S. licensing requirements. Nvidia’s third-quarter guidance projected $54 billion in revenue, higher than analyst expectations, but that number does not account for potential H20 sales in China.
Balancing Growth and Risk
The results highlight Nvidia’s dominance in powering AI systems, yet also underline the risks tied to global trade disputes and export restrictions. With demand for AI chips showing no signs of slowing, the company remains in a growth position — but its reliance on international markets keeps investors wary.
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