Earnings
Home›Earnings›Previews›Nvidia denies China-tailored chip plan ahead of Aug. 2…
Nvidia denies China-tailored chip plan ahead of Aug. 26 results
Nvidia’s outlook for fiscal second-quarter revenue assumes zero data center compute revenue from China, even as its gross margin guidance stays near 75% and the company reports on Aug. 26.
Nvidia denied a report that it planned small-batch shipments of a China-tailored LPU AI chip by year-end, according to Yahoo Finance. The denial arrived less than a week before the company reports fiscal second-quarter results on Aug. 26.
For the quarter, Nvidia guided revenue to $91.0 billion, plus or minus 2%, and said the outlook assumes zero data center compute revenue from China. The company also set gross margin guidance near 75%, essentially flat versus the prior quarter.
The guidance implies a sequential slowdown, with the revenue midpoint pointing to roughly $9.0 billion of new sequential revenue, down from about $13.5 billion added the quarter before. Sequential growth is estimated around 11% at the midpoint, versus 20% previously.
Beyond its own results, Nvidia’s latest Form 13F showed a new stake in SpaceX, and Yahoo Finance noted SpaceX is building AI infrastructure exclusively on Nvidia chips while targeting 10 gigawatts of compute by the end of 2027. The piece also said SpaceX is estimated to spend between $150 billion and $250 billion on chips to reach that goal.