$NVIDIA(NVDA.US) (-2% pre-mkt) reported 2Q results largely in line with expectations and offered 3Q revenue guidance slightly ahead of expectations. That 3Q forecast did not include sales of H20 chips to China, which could add $2B-$5B in new 3Q revenue now that China chip export restrictions have been lifted. I expect NVDA to recover its pre-market losses.
2Q actual:- Net revs $46.74B vs $46.05B exp. - Data center revs $41.1B vs $41.3B est.- Adj EPS $1.05 vs $1.01 exp. 2Q results included no revs from H20 chip sales to China, which have since resumed following a deal between NVDA and Trump, where NVDA pays a fee to the U.S. govt equal to 15% of sales. NVDA 2Q rev lost as a result of the H20 China export restrictions were $3B-$4B.3Q Rev guide:- 3Q revenue guide $54B ($52.9B - $55.1B) vs $53.8B est. The 3Q guidance does not include H20 chip sales to China, which CFO Kress said could add $2B-$5B revs if export issues were resolved, with a “select number” of Chinese customers having received licences in recent weeks.The Trump administration earlier this year blocked exports of the H20 chip, which NVDA designed for the Chinese market. NVDA then cut a deal to allow sales to resume in exchange for giving the US government 15 per cent of the revenues. But it is not clear how quickly these sales can recover. NVDA CFO Colette Kress told analysts the company was waiting for the US government to publish a “regulation” codifying the China export deal struck this month.The copyright of this article belongs to the original author/organization.
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