Nvidia’s Outlook on Data Center Chip Sales to China Ahead of Key U.S.-China Summit

Key Points

• Nvidia’s revenue forecast for its fiscal third quarter is $108.0 billion, excluding data center compute revenue from China.

• Chinese customers contributed approximately 8% of Nvidia’s revenue last quarter, which did not significantly include data center compute products.

• President Donald Trump will meet with Chinese President Xi Jinping on Sept. 24 to discuss artificial intelligence, with Nvidia’s CEO expected to attend.

Nvidia, Inc. (NASDAQ: NVDA) projects a fiscal third-quarter revenue of $108 billion, an increase of 89% from the $57 billion reported in the same period last year, yet it does not foresee any revenue from data center compute in China. The company registered $7.9 billion in billing to customers in mainland China and Hong Kong last quarter, primarily from non-restricted products, with only a negligible contribution from AI computing chips.

Amid ongoing U.S.-China trade tensions, Nvidia’s share of the AI chip market in China has drastically decreased from 95% to nearly zero due to export restrictions. The upcoming state dinner on Sept. 24 at the White House could address these semiconductor trade issues, with the potential to alter Nvidia’s access to the Chinese market in the future.