Nvidia beats estimates but leaves China out of forecast

Nvidia reported strong quarterly earnings Wednesday, beating analyst estimates and raising its third-quarter guidance, but excluded China from its forward outlook due to ongoing geopolitical tensions. Finance chief Colette Kress cited "ongoing geopolitical uncertainty" for omitting China data center revenue from projections. The company sold its first H200 chips in China, but these accounted for under 1% of its $89 billion data center revenue, facing restrictions from both US and Chinese governments. Nvidia secured permission to sell some H200 chips to China after lobbying efforts, but Beijing directives blocked purchases. The company took a $400 million charge for excess H200 inventory as demand fell outside China.