Published on: Aug 28, 2025 01:50 pm IST
Nvidia posted $46.7 billion in revenue and $26.4 billion profit in Q2, driven by soaring AI chip demand. But with zero H20 shipments to China.
Nvidia just delivered another blockbuster quarter. Q2 revenue jumped 56 percent year-on-year to $46.7 billion, thanks to relentless demand for AI hardware. Profit surged too, net income hit $26.4 billion, a 59 percent leap.
Most of that came from data centers, which raked in $41.1 billion, up 56 percent. Blackwell, Nvidia’s AI workhorse, drove the surge, $27 billion of those sales were Blackwell-powered.
Still, the China story remains messy. Nvidia didn’t ship a single H20 chip to Chinese customers last quarter, even though exports were technically cleared, because the arrangement with U.S. regulators hasn’t been codified. The company did sell $650 million worth of H20 chips to non-China buyers.
On the plus side, Nvidia forecasts $54 billion in Q3 revenue, give or take 2 percent. That’s modestly ahead of Wall Street’s estimate, but not enough to calm investor nerves completely.
Still, CEO Jensen Huang isn’t looking over his shoulder. He sees a “new industrial revolution” underway and projects $3 to $4 trillion in AI infrastructure spending by decade-end. “The AI race is on,” he declared.
Why it still matters
Nvidia is hitting home runs on its strength in AI compute—but it’s still playing catch-up to geopolitical complexities. Sales are smashing records. Vision remains grand. China, however, is the one thing that could trip it up.
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Insight |
What it means |
| AI demand stays strong | Data center growth backs up Nvidia’s leadership, AI isn’t going anywhere. |
| China remains a wild card | No H20 sales to China expose both policy risk and lost revenue potential. |
| Outlook’s solid, not stellar | $54 billion guidance is realistic—but not knock-it-out impressive. |
| Vision staying big-picture | Huang’s trillion-dollar bet underscores why Nvidia remains the central AI play. |
