Nvidia (NVDA) stock slid more than 2% in after-hours trading after the company beat on earnings but missed on data center revenue for its second quarter, revenue forecast omits H20 shipments to China.
The AI giant posted adjusted earnings of $1.05 per share versus expectations of $1.01.
Data center revenue was $41.1 billion, slightly below Wall Street consensus estimates of $41.23 billion, according to Bloomberg data.
Additionally, the company’s revenue forecast for the third quarter of $54 billion, plus or minus 2%, does not assume any H20 shipments to China. The omission underscores the uncertainty hanging over US chipmakers amid Washington’s trade tensions with Beijing.
The US has allowed Nvidia to send China its H20 chips, which are less powerful next-generation Blackwell technology, in exchange for a cut of the company’s revenue. However, China’s government has advised domestic companies to use alternative chipmakers.
Nvidia stock has rallied roughly 35% year to date to lead the AI tech trade.
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