Nvidia (NVDA) stock slid more than 2% in after-hours trading after the company beat on earnings but missed on data center revenue for its second quarter, revenue forecast omits H20 shipments to China.
The AI giant posted adjusted earnings of $1.05 per share versus expectations of $1.01.
Data center revenue was $41.1 billion, slightly below Wall Street consensus estimates of $41.23 billion, according to Bloomberg data.
Additionally, the company revenue forecast expected to be $54.0 billion, plus or minus 2%, does not assumed any H20 shipments to China. The omission underscores the uncertainty hanging over chip makers amid US-China trade tensions.
The US has allowed Nvidia to send China its H20 chips, which are less powerful next-generation Blackwell technology, in exchange for a cut of the company’s revenue. However, China’s government has advised companies to use alternative chips.
Chip peers makers AMD (AMD) and Broadcom (AVG0) traded slightly lower in after-hours.
Nvidia stock has rallied roughly 35% year-to-date to lead the AI tech trade.