NVIDIA Guides $108B Q3 Revenue Assuming Zero China Data-Center Sales

NVIDIA's latest results underscore that, price wars in models notwithstanding, the compute layer remains a runaway business. Fiscal Q2 revenue hit $96.2 billion, up 106% year-over-year, with data-center revenue of $89 billion and gross margins holding at 75%. Notably, NVIDIA says it is meeting only roughly 70% of AI chip demand — a supply-constrained position that keeps pricing power intact.

The guidance is the eye-catching number: CEO Jensen Huang projected Q3 revenue of $108 billion while assuming zero China data-center revenue, effectively writing off the China market amid export controls yet still guiding to double-digit sequential growth. Huang also pushed back publicly on AI-safety alarmism, rejecting 'doomsday narratives' — a stance that spilled into community debate, with r/singularity buzzing (374 upvotes) over his claim of a '0% chance' AI ends the world by 2030, splitting optimists and doomers.

The report also disclosed NVIDIA adding $1.5 billion to solar developer SB Energy, bringing its total backing to $3 billion ahead of an IPO — part of a pattern of NVIDIA investing across the AI-infrastructure and energy supply chain. The strategic read: as model vendors compete on cost per token, NVIDIA sits above the fray, selling the picks and shovels at 75% margins with demand it can't fully fill. Risks include the China write-off becoming permanent, rising competition from custom silicon (Alibaba's Zhenwu V900, Huawei Ascend, hyperscaler in-house chips), and the sheer scale of capex commitments across the industry that must eventually generate returns.