Nvidia exceeded expectations once again in Q2 of 2025, but China remains a question mark. Here are the takeaways from the Q2 earnings call.
Nvidia exceeded expectations once again in its second quarter of 2025, but China remains a question mark.
On Wednesday, the chipmaking giant reported $46.74 billion in revenue and adjusted earnings per share of $1.05, both beating analyst estimates. The company also forecast third-quarter sales of about $54 billion.
Despite the upbeat earnings, Nvidia shares slipped in extended trading as data center revenue fell short of forecasts for a second straight quarter, and as signs of slowing growth began to show.
From the uncertainties around the H20 chips’ shipment to China to the spending on AI infrastructure, here are the main takeaways from the chipmaking giant’s earnings call.1. H20 shipments to China remain uncertain
CFO Colette Kress said Nvidia has yet to ship any H20 chips to China this quarter, despite some customers recently receiving licenses.
In the earnings call, she said that shipments worth $2 to $5 billion could flow if restrictions ease, but the company has excluded that revenue from its third-quarter forecast. The company has also floated a 15% remittance to the US government on licensed sales, though no rule has been finalized.
«We just have to keep advocating», CEO Jensen Huang said during the call with investors.
«It is the second-largest computing market in the world, and it is also the home of AI researchers. About 50% of the world’s AI researchers are in China», Huang added. «So it’s fairly important, I think, for the American technology companies to be able to address that market.»
David Wagner, head of equity at Aptus Capital Advisors, wrote in a note to Business Insider that the negative stock reaction feels like an «incorrect knee-jerk reaction», and that the company’s current growth rate is still «remarkable.
