US chip giant Nvidia reported record second-quarter sales Wednesday, but gave a lackluster revenue forecast, fueling concerns on Wall Street.
The earnings report for the world’s most valuable corporation was seen as a bellwether for whether massive investments in AI are paying off; Nvidia’s 56% quarterly sales gain was its smallest in more than two years. Analysts were also watching for signals on Nvidia’s China business: Beijing told local companies last month to stop buying Nvidia’s chips, after the company struck a deal with the US government to take a 15% cut of its China revenue.
Nvidia didn’t record any recent sales of its H20 AI chip to China, and its forecast excluded data center revenue from the country.