Nvidia reported quarterly revenue of $96.2 billion, representing a 106% year-over-year increase. The data center segment accounted for $89 billion of this total. For the upcoming third quarter, the company issued a revenue guidance of $108 billion.
The financial forecast for the third quarter assumes zero revenue from data center chip sales to China. Previously, China contributed between 13% and 20% of the company's data center revenue, but this figure has dropped to less than 1% in the recent quarter.
Total revenue from China across all product categories reached approximately $7.88 billion, including gaming GPUs and automotive chips. Analysts estimate the annual demand for AI chips in China at $50 billion, a market currently restricted by both US export controls and local purchasing limitations.
Despite the loss of the Chinese data center market, Nvidia projects approximately 70% revenue growth for the full fiscal year 2028. The company attributes this performance to high capital expenditure on data centers by major hyperscalers, including Microsoft, Amazon, Google, and Meta.
