Nvidia’s Stock Dips After Mixed Earnings and Muted China Outlook

August 28, 2025 (New York) - Shares of Nvidia Corporation (NASDAQ: NVDA) opened lower on Thursday after the AI-chipmaker reported second-quarter results that beat Wall Street estimates but flagged continued uncertainty around sales into China.

Nvidia posted adjusted earnings per share of $1.04 on revenue of $46.7 billion, topping analysts’ forecasts of $1.01 and $46.1 billion, respectively. Data-center revenue-a key growth driver-rose 56% year-over-year to $41.1 billion but narrowly missed expectations of $41.34 billion, as U.S. export restrictions kept H20 chip shipments to China at zero.

For the fiscal third quarter, Nvidia guided revenue of approximately $54 billion, plus or minus 2%, in line with the average Wall Street estimate but well below some bullish forecasts above $60 billion. The outlook excludes any H20-related sales to China amid ongoing trade tensions.

In after-hours trading on Wednesday, Nvidia shares slipped about 2% following the earnings release, and on Thursday morning the stock traded down roughly 1.4% in premarket action. Investors remain cautious as the company navigates geopolitical headwinds in China, its second-largest market.

Chief Executive Jensen Huang emphasized the strength of Nvidia’s next-generation “Blackwell” platform and its potential once export controls are eased. “Production of Blackwell Ultra is ramping at full speed, and demand is extraordinary,” Huang said, while urging U.S. regulators to finalize rules for more advanced chip exports to China.

Market analysts noted that although Nvidia continues to exceed revenue and profit expectations, the lack of China sales keeps upside limited. “There were no H20 sales to China-based customers in the second quarter,” Nvidia CFO Colette Kress confirmed, adding that approved buyers in China have only recently begun licensing discussions.

Global markets also reacted to the earnings news. Asian equities wavered as Nvidia’s muted outlook weighed on sentiment in technology-heavy indices, though regional markets ultimately finished mixed.

Investors will look to Nvidia’s October GPU Technology Conference keynote for further updates on the Rubin AI platform and potential catalysts for renewed growth.