Nvidia sales climb by more than 50 percent

Chips from Nvidia have become the key technology for artificial intelligence. This has resulted in rapid growth for the Group. However, US export hurdles are still putting pressure on business in China.

The AI boom means that the chip company Nvidia‘s business continues to grow rapidly despite the ongoing problems with trade with China. In the past quarter, turnover jumped by 56 percent year-on-year to 46.74 billion dollars (just over 40 billion euros). Nvidia exceeded Wall Street’s expectations. In comparison to the previous quarter, there was an increase of six percent.

Due to the US export barriers, Nvidia did not record any sales of the slimmed-down AI chips with the designation H20 in the Chinese market in the past quarter. However, the company did manage to sell some of the blocked chip systems to a customer from another country, the company announced.

Business in China remains quiet

A few weeks ago, Donald Trump’s government gave up its opposition to H20 sales to China. One price for this is that the US state is to receive a 15 percent share of sales. However, deliveries have not yet gotten off the ground – because Beijing is now taking a stand against the use of AI chips from the USA, citing security concerns among other things.

In this situation, Nvidia is also not planning any sales in China for the current quarter for the time being. The Group expects sales of 54 billion dollars (with a margin of two percent less or more). Analysts on average expect less than 53.5 billion dollars.

Share falls

The shares lost around three percent at times in after-hours trading. Nvidia just missed market expectations in data center technology with a turnover of 41.4 billion dollars.

On balance, the quarterly profit rose by 59% year-on-year to a good 26.4 billion dollars.

dpa