Nvidia’s Biggest Customer Spent More Than $10B Last Quarter
1 hr 45 min ago
One bit of sport for investors who closely track Nvidia’s quarterly financial reports: looking to see how much of its revenue comes from a few big customers.
The update for the fiscal second quarter said that one direct customer—what the company defines as companies that purchase directly from Nvidia, rather than those who repurchase them from those direct customers—accounted for 23% of revenue.
And how much revenue does that come out to, by the way? A cool $10.7 billion,
That customer, Nvidia said in a regulatory filing, accounted for a fifth of its total first-half revenue.
Another big customer accounted for 16% of second quarter revenue and 15% of first-half sales, the filing said.
Several of Nvidia’s major Big Tech clients, including Microsoft (MSFT), Meta (META), Amazon (AMZN) and Google parent Alphabet (GOOGL), have committed to heavy spending on infrastructure to build out their AI capacity.
Huang Teases Rubin Update Ahead of October GTC
2 hr 1 min ago
Nvidia’s next-generation Rubin platform is going to have “a whole bunch of new ideas,” Huang told analysts, but he kept them close to the vest (and perhaps his signature leather jacket) for now.
“I pause for a second because I’ve got plenty of time between now and a year from now to tell you about all the breakthroughs that Rubins are going to bring,” Huang said. “I’m anxious to tell you, but I can’t right now. I’ll save it for GTC.”
Nvidia’s next GTC, or GPU Technology Conference, is scheduled to begin in Washington D.C. on Oct. 27, with Huang’s keynote coming a day later.
–Andrew Kessel
Big Cloud Customers Driving Most of Revenue
2 hr 7 min ago
CFO Collette Kress said the large cloud service providers led growth in the company’s data center segment during the quarter.
“We recognized Blackwell revenue across all customer categories, led by large cloud service providers, which represented approximately 50% of Data Center revenue,” Kress said.
However, Huang suggested he expects demand to expand across industries as demand for AI and its applications expand.
“As the AI race is now on, the CapEx spend has doubled to $600 billion per year. There’s five years between now and the end of the decade, and $600 billion only represents the top four hyperscalers. We still have the rest of the enterprise companies building on [premise],” Huang said.
Kress said the chipmaker expects AI infrastructure spending to reach $3 trillion to $4 trillion by the end of the decade.“The scale and scope of these buildouts presents significant long-term growth opportunities for Nvidia,” she said.
–Kara Greenberg
Next-Gen Rubin Platform ‘On Schedule’
2 hr 19 min ago
Nvidia’s Rubin AI computing platform, the successor to its Blackwell line, “remains on schedule for volume production next year,” CFO Collette Kress said on the company’s earnings call.
This keeps the company on pace to release a new product every year, she added.
Due in 2026, Rubin represents a 900-fold increase in computing power over its Hopper architecture, Nvidia said at a conference earlier this year.
From there, Rubin Ultra GPUs are expected in 2027 and a next-generation architecture named for physicist Richard Feynman is planned for 2028.
–Andrew Kessel
Huang Sees $50 Billion China Opportunity This Year
2 hr 27 min ago
Though Nvidia didn’t count China sales in its fiscal third-quarter outlook, Huang said during the company’s earnings call he estimates the China market could represent a $50 billion opportunity for Nvidia this year.
That is, “if we were able to address it with competitive products,” Huang said, and it continues to grow as projected, as the company talks with the Trump administration about the market’s importance for the company and the industry.
“It’s fairly important, I think, for the American technology companies to be able to address that market,” said Huang. “We just have to keep advocating the sensibility of and the importance of American tech companies to be able to to lead and win the AI race and help make the American tech stack the global standard.”
Huang said there is “real possibility,” Nvidia could be granted a license to sell Blackwell chips (more powerful than H20) in China.
Trump suggested earlier this month he would be open to extending licenses to cover a version of Blackwell for the China market, after further negotiations.
–Kara Greenberg
Analysts Say Cautious Approach on China Warranted
2 hr 36 min ago
Nvidia executives have taken a cautious approach to their outlook regarding China, with the company leaving it out of its fiscal third-quarter guidance announced earlier today. It didn’t have much choice, analysts said.
“The news flows daily,” DA Davidson’s Gil Luria said on CNBC Wednesday afternoon, with the company and the U.S. government still working out its approach to China. “I trust in Jensen Huang to navigate it, but until he has a strong answer, they do have to guide without China numbers in there,” Luria said.
“Nobody could put a number out there that includes China right now,” Moor Insights & Strategy’s Patrick Moorhead told CNBC. “If they did, they would be making it up and I think Nvidia’s just being conservative.”
–David Marino-Nachison
H20 Chip Sales in China Haven’t Yet Resumed, CFO Says
2 hr 53 min ago
Nvidia CFO Collette Kress said the company has not yet resumed sales of its H20 chips in China, as it waits for the U.S. government to codify its revenue-sharing agreement.
The chipmaker recently agreed to pay 15% of its China chip revenue to the government in exchange for export licenses, but Kress said the government has yet to publish new export regulations. As such, Nvidia did not include H20 sales in its third-quarter forecast.
Nvidia said its second-quarter results were boosted by the release of $180 million tied to sales of inventory of its H20 chips, which were prohibited in China during the quarter by the Trump administration’s export controls, to a customer outside China.
The chipmaker said that without its sales of previously reserved H20 chips outside of China, it would have reported EPS of $1.04, rather than the $1.05 that was reported.
–Andrew Kessel
Revenue Breakdown by Segment
3 hr 21 min ago
Data center revenue makes up, by a long margin, more than the rest of Nvidia’s segments combined. Here’s a breakdown of fiscal second-quarter revenue by segment, according to the company:
- Data center revenue, at $41.1 billion rose 5% from the fiscal first quarter and 56% year over year.
- Gaming revenue came in at $4.3 billion. It rose 14% sequentially and 49% year-over-year.
- Professional visualization revenue, at $601 million, was up 18% from the first quarter and 32% from the year-ago quarter.
- Automotive and robotics revenue was $586 million. It was 3% higher than in the fiscal first quarter, and 69% higher year-over-year.
–David Marino-Nachison
Revenue Guidance Doesn’t Include H20 China Chip Sales
3 hr 30 min ago
Nvidia on Wednesday told investors to expect fiscal third-quarter revenue of $54 billion, give or take 2%. Those figures don’t include any sales of its H20 chips to China.
At the high end of that range, sales would be above $55 billion. At the low end, it would mean something a bit below $53 billion. The latest Visible Alpha consensus estimate is $53.8 billion.
The company expects fiscal third-quarter GAAP and non-GAAP gross margins of 73.3% and 73.5%, respectively, give or take 50 basis points. It pointed investors toward full-year gross margins, a closely watched figure, in the “mid-70% range.”
GAAP and non-GAAP operating expenses were projected at $5.9 billion and $4.2 billion respectively, for the current quarter, with full-year operating expense growth seen in the “high-30% range.”
The company also approved an additional $60 billion in stock buybacks.
–David Marino-Nachison
Record Data Center Sales Slightly Miss Expectation
3 hr 41 min ago
Nvidia’s data center sales climbed to a quarterly record of $41.1 billion in the second quarter, up 56% from a year ago. However, that was slightly below analysts’ estimates, which climbed ahead of the report.
Several of Nvidia’s major Big Tech clients, including Microsoft (MSFT), Meta (META), Amazon (AMZN) and Google parent Alphabet (GOOGL), have committed to heavy spending on infrastructure to build out their AI capacity in their recent earnings calls, contributing to investors’ high expectations.
Last month, Alphabet raised its full-year forecast for capital expenditures to $85 billion, citing growing demand for cloud computing products and services, while Meta said it now expects $66 billion to $72 billion in capital expenditures this year, raising the lower end of its projected range by $2 billion.
–Kara Greenberg
Revenue, Profit Top Analysts’ Estimates
3 hr 43 min ago
The AI chipmaker posted adjusted earnings of $1.05 per share, compared to the $1.02 that analysts had expected.
Revenue soared 56% from the year-ago period to a record $46.7 billion in the second quarter. That compared with Street expectations for revenue of $46.52 billion, according to analysts’ estimates compiled by Visible Alpha.
Nvidia shares were down about 2.5% in recent after-hours trading.
–Kara Greenberg
Today’s Headline Stock is Having a Strong 2025
3 hr 57 min ago
Nvidia (NVDA) is the best-performing stock in the Magnificent Seven this year, its shares rising 35% through today’s close.
The AI chipmaker’s shares have thus far outperformed all six of their big tech counterparts – Meta (META), up about 28%, is closest – as well as the Roundhill Magnificent Seven ETF (MAGS), up 11% this year, and the S&P 500 (SPX), up about 10%.
Most of the Magnificent Seven stocks are in the green this year, with Tesla (TSLA) and Apple (AAPL) the exceptions. Amazon (AMZN) and Alphabet (GOOG, GOOGL) have risen, but they’re also trailing the S&P 500 in 2025.
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What Analysts Think of Nvidia Heading Into Earnings
4 hr 33 min ago
Wall Street analysts expect Nvidia’s sales could reach another record high, despite an anticipated hit from export curbs.
The company is projected to report adjusted earnings per share of $1.02 for the fiscal second quarter on an over 50% year-over-year jump in revenue to $46.52 billion, according to consensus estimates compiled by Visible Alpha. CEO Jensen Huang could also provide more details during the company’s earnings call about the timing of new products, including Nvidia’s next-generation Rubin lineup and a more powerful AI chip tailored for China’s market.
In May, Nvidia warned it could face an $8 billion hit from China export restrictions, and although the company recently struck a 15% revenue-sharing agreement with the Trump administration to resume sales of its H20 chip in China, Wednesday’s report will still reflect the full impact of the restrictions.
Despite near-term trade policy headwinds, Wall Street analysts are overwhelmingly bullish on the chipmaker’s prospects. Of the 14 analysts with current ratings surveyed by Visible Alpha, 13 call the stock a “buy,” compared to one “hold” rating. Their targets range from $155 to $225, with the majority above $200, suggesting significant upside from the current price of around $182.
“Expectations have risen ahead of Nvidia’s earnings, and we think rightfully so,” Morgan Stanley analysts said last week, as they raised their target to $206 from $200, citing strong AI demand signals. UBS also raised its target, to $205 from $175, while Wedbush boosted its to $210 from $175.
–Kara Greenberg
Traders Expect Big Post-Earnings Stock Price Move
4 hr 40 min ago
Nvidia’s stock is expected to move approximately 6.2% in either direction by the end of the week, according to options pricing data. That big of a move from Tuesday’s close would put shares at either $192.88, an all-time high that translates to a $4.7 trillion market capitalization, or $170.66, its lowest price since mid-July.
Nvidia has reported earnings 10 times since the release of ChatGPT in late 2022 sparked the AI craze that’s made it the world’s most valuable company. The stock posted double-digit gains in the days after four of those reports, most recently in May 2024.
But Nvidia’s earnings have struggled recently to clear the exceptionally high bar set by Wall Street. In the past four quarters, Nvidia stock has moved an average of 3.2% between reporting earnings and the end of the week. On only one of those occasions—the most recent report in May—did Nvidia finish the week above where it was before reporting earnings.
Investors will be scrutinizing Nvidia’s report Wednesday for confirmation that AI demand remains strong. Hyperscalers Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN) all recently stood by plans to spend hundreds of billions of dollars this year on data center infrastructure and other capital goods, citing robust demand for AI and cloud computing. Nvidia, with an estimated 80% to 90% share of the AI chip market, should be the biggest beneficiary of that spending.
Wall Street will also be hoping for updates on sales to China. Nvidia warned in May that the Trump administration’s decision to tighten China export controls could cost it up to $8 billion in the second quarter. Earlier this month, Nvidia and competitor Advanced Micro Devices (AMD) struck a deal with the Trump administration that allows them to resume sales of key AI chips to China in exchange for a 15% cut. That deal came too late to have any impact on Wednesday’s results, but it should be factored into Nvidia’s guidance.
Analysts are overwhelmingly bullish on Nvidia. Of the 14 analysts tracked by Visible Alpha with current ratings on Nvidia’s stock, 13 rate it a “buy” and one gives it a neutral “hold” rating. Their targets range from $155 to $225, with the majority above $200. The stock was little changed near $182 in late trading Wednesday.
–Colin Laidley