Workflow
Nvidia shares sink as lackluster outlook sparks worries about an AI slowdown
NvidiaNvidia(US:NVDA) New York Postยท2025-08-27 22:41

Core Viewpoint - Nvidia's stock declined by up to 5% following a financial outlook that raised concerns about a potential slowdown in the artificial intelligence sector [1] Financial Outlook - Nvidia expects revenue of $54 billion for the current quarter, which is below high-end estimates exceeding $60 billion [2] - The company reported a revenue growth of 56% to $46.74 billion and a net income increase of 59% to $25.78 billion, or $1.05 per share, both figures surpassing analyst expectations [4] - Revenue from AI data centers, a key sales driver, surged 56% to $41.1 billion [4] Market Dynamics - CEO Jensen Huang stated that demand for Nvidia's AI chips remains high, with claims that everything is sold out [3] - The company has faced challenges in its China business due to trade tensions and regulatory issues, with no sales of the H20 chip to China reported in the latest quarter [3][4] - Earlier this year, Nvidia was barred from selling H20 chips to China, but the White House recently allowed sales in exchange for a 15% revenue cut [7] Geopolitical Factors - Reports indicate that Beijing is displeased with comments made by US officials regarding chip sales, leading to a potential halt in H20 chip production [8] - Chinese officials have cited security risks as a reason for their warnings about Nvidia hardware [8]