San Francisco, August 28, 2025 – Nvidia reported solid growth in its latest quarterly results but left investors cautious as uncertainty over its China business overshadowed the outlook. The company’s shares slipped 3.2% in after-hours trading, wiping about $110 billion from its $4.4 trillion market capitalization.

China Sales Excluded from Forecast

CEO Jensen Huang said Nvidia is awaiting approval to resume sales of its advanced chips in China after reaching a deal with US President Donald Trump to pay commissions to the US government. However, with no formal rules in place and concerns that Chinese regulators may discourage purchases, the company excluded potential China sales from its forecast.

For the current quarter, Nvidia projected revenue of $54 billion (±2%), slightly above Wall Street estimates of $53.14 billion. Still, investors were disappointed as the outlook lacked the “blowout” numbers they have come to expect.

Data Center Growth Slows

Nvidia’s key data center division generated $41 billion in revenue, just shy of analyst expectations, amid signs that major cloud providers may be tightening near-term spending. Analysts said hyperscalers are cautious about immediate returns from AI applications despite surging demand.

The company reported $46.74 billion in total revenue for Q2, ahead of estimates, and forecast gross margins of 73.5%. It also announced an additional $60 billion in share buybacks.

AI Demand Still Strong

Despite geopolitical headwinds, demand for Nvidia’s chips powering generative AI remains strong. CFO Colette Kress said sovereign AI initiatives—selling AI hardware and software to governments—are expected to bring in $20 billion this year. She also projected that AI-related investments could reach $3–4 trillion globally by 2030.

Nvidia added that if restrictions ease, shipments of its H20 chips to China could contribute an additional $2–5 billion in quarterly revenue.

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