Nvidia generates $47.4 billion in AI chip revenue despite China shipment ban

In the second quarter of 2025, Nvidia, a leading U.S. semiconductor manufacturer, achieved a remarkable revenue of $47.4 billion, marking a 56% increase from the same period in 2024. This growth occurred despite the company not making any shipments of its flagship H20 AI chip to customers in China due to trade restrictions. The results surpassed analyst expectations by a margin of $68 million, indicating a continued strong demand for AI infrastructure globally. Despite this growth, the performance was Nvidia's weakest in nine consecutive quarters, where it had seen above 50% year-over-year revenue growth dating back to summer 2023. Analysts attributed the recent dip to lower-than-expected results from Nvidia's data center segment, which constitutes nearly 90% of its business. In subsequent after-hours trading, Nvidia's stock price fell by more than 2%, a deviation from the positive trend seen in the days leading up to the earnings report. Nvidia forecasted that its revenue for the upcoming quarter, from July to September, would also be above expectations, projected at around $54 billion. This forecast, however, assumes no sales of the H20 AI chip to the Chinese market as geopolitical tensions continue to influence trade dynamics. Nvidia's Chief Financial Officer Colette Kress emphasized that the company expects AI infrastructure spending to range between $3 trillion and $4 trillion over the next five years, suggesting a significant and sustained investment in this sector. The competitive landscape sees key players like Meta and OpenAI leading the AI development race, pushing Nvidia's strategic importance. CEO Jensen Huang stated annual spending on AI technology by major tech companies has increased by 100% to $600 billion. While Nvidia revels in this growth, concerns about the stock market's reaction and potential bubbles in investment persist, marking a complex picture for the future of the semiconductor and AI industry.