nvidia's latest financial report: china's market contributes greatly
2024-08-31
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[global times comprehensive report] us chip giant nvidia released its second quarter financial report for fiscal year 2025 (second quarter of natural year 2024) ending july 28 on the 28th. despite the us government's strict export controls on advanced artificial intelligence (ai) chips, revenue from the chinese market still increased during the reporting period.
data shows that nvidia's revenue in the second quarter was $30.04 billion, a year-on-year increase of 122%; net profit was $16.599 billion, a year-on-year increase of 168%. however, nvidia's revenue forecast for the third quarter was lower than the most optimistic market expectations, causing investors to worry about nvidia's slowing performance growth. after the financial report was released, nvidia's stock price fell 8% in the after-hours period.
despite the impact of the us government's crackdown on chinese technology, nvidia's revenue from the chinese market still grew in the second quarter. the nikkei asian review said that in the three months ending july 28, china's market revenue reached us$3.7 billion, a year-on-year increase of 33.8% and a quarter-on-quarter increase of 47.2%. the report said that the us government will strengthen export controls on ai chips against china in 2023. nvidia revealed in november 2023 that more than 20% of its data center business is affected by export controls.
nvidia cfo colette kress said in a financial report conference call on the 28th that due to export controls, although data center revenue from china was lower than before, it still increased month-on-month in the second quarter and became an "important contributor" to the company's total data center revenue. however, she also emphasized that there will be fierce market competition in the chinese market.
xiang ligang, chairman of the zhongguancun information consumption alliance, told the global times that the chinese market accounts for 20% to 25% of nvidia's data center business revenue. as the world's largest computer production base and a market with great potential for artificial intelligence applications, china has an important strategic position in nvidia's global market. however, the united states has repeatedly and targetedly tightened export controls on advanced artificial intelligence chips, resulting in nvidia's revenue shrinking in china, and its future performance growth will lose an important support. xiang ligang said, "nvidia's performance exceeded expectations but plummeted after the market because of market concerns about its slowing performance growth. the united states is promoting trade protectionism of 'decoupling and breaking the chain' and 'small courtyard and high walls', which ultimately harms the interests of american companies." (ni hao)
