Nvidia still growing, but China uncertainty clouds outlook
Stephen Nellis, Max A. Cherney and Arsheeya Bajwa
-Nvidia shares on Wednesday, the fate of the Chinese business was hung in balance and caught a trade war between Washington and Beijing.
CEO Jensen Huang awaits permission to restart Nvidia’s chips to China after making an agreement with US President Donald Trump to pay a commission to the US government. However, without any questions about whether or not Chinese regulators will deterrence Nvidia chips purchases on a official US rule, BellWether excluded potential Chinese sales for the existing quarter.
This left a warm appearance that investors were accustomed to exploding results and fell by 3.2% in post -overtime. Stock decline cropped about $ 110 billion from Nvidia’s $ 4.4 trillion market value.
“Nvidia’s biggest bottleneck is not diplomacy, not Silicone,” said Michael Ashley Schulman, Point Capital’s chief investment manager. Nvidia’s growth curve, “is still impressive, but not a master” he added.
According to the data compiled by LSEG, the chip manufacturer expects $ 54 billion in the third quarter, plus or minus 2%income in the third quarter, compared to analysts’ an average estimation of $ 53.14 billion. However, the second quarter results of the financial second quarter have been below the expectations of some analyst expectations in the important data center segment, some analysts show that cloud computing providers may be more careful about spending.
Nvidia also said that although he received some licenses to sell them at the beginning of this month, he did not receive any shipment in the appearance of the H20 chips. If geopolitical problems are reduced and received more orders, Nvidia said that in the third quarter, H20 can add $ 2 billion to $ 5 billion to $ 5 billion.
Ben Bajarin, Creative Strategies CEO, technology consulting firm, said that although Nvidia’s estimation is slightly smoother than the expectations of the estimation, all sales to the next quarter will be added to the appearance. “This is a big question mark to watch.”
Nevertheless, for NVIDIA’s advanced chips, businesses will be able to quickly process a large amount of data used by productive AI applications as they compete with each other to dominate new technology.
Chief Finance Manager Colette Kress said that the company’s “sovereign AI” efforts – an effort to sell AI chips and software to governments around the world – said that this year is on its way to generate $ 20 billion. Kress also said that AI was encouraged to spend 600 billion dollars by cloud and corporate customers this year, and that it could produce $ 3 trillion to $ 4 trillion dollars for infrastructure expenditures by the end of ten years.
Large technology companies, including commodity platforms and Microsoft, spend liberally to support AI ambitions, and Nvidia is the greatest beneficiaries of the funnel towards their chips.
The company said that approximately half of the data center income of 41 billion dollars came from large cloud service providers in the last quarter.
According to visible Alpha data, this was slightly below estimates of $ 41.42 billion. According to LSEG data, NVIDIA also foresees 73.5% gross margins for 73.5% for the existing quarter.
“Although the results of the data center, the results of the data center, the results of the AI applications remain difficult to measure close -term returns, show clues that hyperscaler expenditures can be bored in margins.” He said.
Advanced Micro devices, which develop AI servers, competing with NVIDIA, fell 1.4% after NVIDIA’s results.
The enthusiasm for AI stocks gathered around Nvidia while dealing with Wall Street’s selection and jumping operations has been the dominant power behind the rally behind the S&P 500 index in the last two years.
“This is the smallest reaction to a earning report in Nvidia’s AI incarnation,” Jake Behan, President of the Capital Markets in Direxion in New York. He said. “Although there was no explosion, I miss it.”
In May, Nvidia expected the pavements to shave $ 8 billion sales from July. The company defeated 46.06 billion dollars in the second quarter and reported $ 46.74 billion revenue.
However, it seems that Nvidia has a demand for H20 outside China. During his call for analyst, Kress said that a single customer, except China, bought chips worth $ 650 million in the second quarter.
Nvidia also said it allowed $ 60 billion to purchase of stocks.
This article was created from an automatic news agency feeding without changing the text.
