NVIDIA stocks slide with uncertainty in China

Nafidia The shares fell on Thursday, when investors digested the latest company Profit reportWhich referred to a strong demand for artificial intelligence, but it only provided little clarity China.

Sales increased by 56 % per quarter to $ 46.74 billion, which was almost in the Wall Street line $ 46.06 billion, according to LSEG. The company has reported a modified earnings per share of $ 1.05, only tops $ 1.01 per share estimated by analysts.

The best results were expected to be cloudy due to concerns about the future of NVIDIA in China.

“There was a more noise around this quarter and guides and what is more implicit than I absolutely remember in the NVIDIA neighborhood, not to mention any other huge technology company,” said Jin Monster of Deepwateer Management. “Of course, many of these noise are associated with all mechanics around China.”

In April, and Trump administration Nvidia was prevented from selling it H20 Slide In the market.

In August, the CEO of Nvidia Jensen Huang made a deal with the president Donald Trump To restart sales to China By agreeing to give 15 % of sales in the region to the government. This deal has not been completed.

Huang said in a call with analysts on Wednesday, adding that there is a “real possibility” that NVIDIA can sell the advanced Blackweell processor there.

But the fate of the H20 chip, which was specially made for China, is still in the air.

The administration said that NVIDIA could charge between two billion dollars and $ 5 billion in H20 revenues during the third quarter if the geopolitical environment allows.

NVIDIA said it expects the revenue of this quarter of $ 54 billion, in addition to or minus 2 %, although this number does not include any H20 shipments to China. Analysts expected revenues of $ 53.1 billion, according to LSEG.

The revenue of the 41.1 billion data center won in the second quarter of estimates for the second consecutive period, but it still grew by 56 % over the previous year. The part increased by 5 % from the first quarter, as it slowed from the previous quarter when the data center’s revenues grew by 10 %.

For NVIDIA, there are still many reasons for optimism.

In a post -profit phone call with investors, Huang International said that Amnesty International has made “tremendous progress” last year and that building an Amnesty International’s infrastructure is still in its early stages.

“As the artificial intelligence revolution entered Steam, with the emergence of artificial intelligence now, Capex spending has doubled to $ 600 billion annually,” he said. “There are five years from now until the end of the contract, and only 600 billion dollars represent the best four excess.”

Huang 3 trillion dollars to $ 4 trillion expected to spend on Amnesty International’s infrastructure by the end of the decade.

“The opportunity in the future is enormous,” he added.

In the Thursday note, analysts said that NVIDIA’s guidelines were “only modest to consensus on the high street,” but the report generally showed “strong and annual growth.”

“We believe that the results of NVIDIA are consistent with its previous goals and in no way indicate a slowdown in the interest or investment of artificial intelligence at the level of industry,” wrote analysts, who have a purchase on NVIDIA shares, in a memorandum of customers.

JPMorgan analysts wrote that the results showed that “Playbook is still the same” for NVIDIA.

Analysts said: “There is a strong rhythm and raised with multiple lesions in playing to lead the upward trend, against the backdrop of a multi -year growth runway to spend the infrastructure of Amnesty International, as NVDA continues in our opinion on obtaining a large majority of gradual spending (as happened in almost 3 years),” said analysts.