NVIDIA Excludes China Data Center Compute Revenue From $108B Outlook
In fiscal Q2, NVIDIA reported $96.2 billion in revenue, up 18% sequentially and 106% year-over-year, with data center revenue reaching $89 billion—a 117% increase from the prior year. The company excluded China Data Center compute sales—accounting for less than 1% of total data center revenue—from its guidance for Q3, which is set at $108 billion (±2%). Despite this exclusion, NVIDIA has shown it can maintain strong growth through other customer segments. Hyperscale and AI cloud/enterprise customers drove the majority of demand. Hyperscale revenue hit $48.7 billion (+102% YoY), while ACIE revenue rose to $40.3 billion (+138% YoY). Gross margins remained stable at 75%, though management expects a slight decline in Q3 and further pressure from rising memory costs. NVIDIA's supply commitments have grown significantly, reaching $279 billion due largely to increased memory procurement. Extended payment terms with large customers also led to an increase in accounts receivable.
Tickers: $NVDA
Topics: AI Clouds China Exclusion Data Center Revenue Growth