Nvidia(US:NVDA) Xin Lang Cai Jing·2025-09-01 08:23Core Viewpoint - Nvidia's performance in the Chinese market has significantly deteriorated due to U.S. government restrictions, leading to a substantial drop in sales and revenue expectations for AI chips in the region [1][2]. Financial Performance - For the second quarter of fiscal year 2026, Nvidia reported earnings per share (non-GAAP) of $1.05, a 54% increase from $0.68 in the same quarter of the previous fiscal year [2]. - Total revenue (non-GAAP) reached $46.7 billion, marking a 56% increase compared to $30 billion in the same quarter of the previous fiscal year [2]. - Data center revenue was reported at $41.1 billion, with no previous year comparison available [2]. - Gross margin (non-GAAP) decreased to 72.7% from 75.7% year-over-year, reflecting a 3% decline [2]. Market Impact - The H20 chip, specifically designed for the Chinese market, previously accounted for 80% of Nvidia's revenue in the region, but sales have been halted due to U.S. sanctions [2]. - Despite attempts to revive sales of the H20 chip, including visits by CEO Jensen Huang to China, the company faces significant challenges due to security concerns and market hesitance [4][5]. - The introduction of processors based on the Blackwell architecture is planned, but procurement from state-owned or government-affiliated enterprises remains uncertain due to ongoing safety doubts [5].