Nvidia posts robust revenue, China risk and customer concentration

Nvidia on Wednesday posted another blockbuster quarter — $46.7 billion in revenue for the three months ended July 27, a 56 percent year‑over‑year gain — and net income of $26.4 billion, up 59 percent, but the results failed to soothe investor concerns about China, customer concentration and the pace of future growth. The Santa Clara chipmaker beat overall Street estimates and reported adjusted earnings per share of $1.05, yet its shares slipped in after‑hours trading after management disclosed a narrow shortfall and lingering geopolitical uncertainty.

The company said data‑center sales, the engine of its AI business, totaled $41.1 billion, also up 56 percent year‑over‑year but slightly below some analysts’ forecasts of roughly $41.3 billion. Nvidia credited much of the strength to its new Blackwell architecture, which the company said drove a 17 percent sequential increase in Blackwell volumes and helped boost networking revenue and other categories, including gaming and automotive. CEO Jensen Huang called Blackwell “the AI platform the world has been waiting for” and said production of Blackwell Ultra is ramping at full speed.

Still, executives flagged China as the key...