Nvidia Thrives in AI Surge Despite Geopolitical Headwinds
Nvidia reports 56% revenue growth as AI demand soars, even as US-China tensions persist.
Chip designer Nvidia posted $46.7bn in Q2 revenue, up 56% year-on-year, as demand for AI accelerates among leading tech firms.
The company navigates US-China trade tensions even as it seeks government approval to resume high-end chip sales to China.
AI-driven growth
Nvidia's data center revenue rose 56% to $41.1bn, driven by orders from Meta, OpenAI and others expanding their AI infrastructure.
CEO Jensen Huang told analysts that four major tech firms now spend $600bn annually on AI, and predicted AI will boost global GDP growth.
The company forecasts next-quarter revenue of $54bn, beating Wall Street expectations, after becoming the first $4trn market cap firm in July.
Geopolitical headwinds
Nvidia reactivated sales of its H20 chips to China following a US license review, though no shipments have yet occurred.
The US government will claim 15% of revenue from these licensed sales, and Nvidia is lobbying to sell its advanced Blackwell chips to Chinese customers.
Analysts warn that US export controls are spurring China to ramp up its domestic chip development.
Nvidia's remarkable revenue surge underscores AI's growing economic impact and highlights the tech sector's delicate balance with geopolitical constraints.
This topic was reported by BBC.
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