Nvidia expects revenue in the current quarter to grow by more than 50 per cent year-on-year, despite its outlook not including any sales of H20 chips and a limited overall upside in China.

Q3 revenue is expected to reach $54 billion. The company noted H20 revenue could hit $2 billion to $5 billion if certain geopolitical conditions are favourable.

The chipmaker’s guidance comes despite not recording any H20 sales in China in Q2. It was able to shift shipments to customers outside of the mainland.

The company’s Q2 net profit jumped 59 per cent year-on-year to $26.4 billion.

Total revenue increased 56 per cent to $46.7 billion, supported by a similar increase in the data centre segment to $41.1 billion and 49 per cent growth in gaming sales to $4.3 billion.

Overall H20 sales in the quarter reached $650 million.

CEO Jensen Huang said in an earnings call production of its next-generation Blackwell Ultra chip is ramping at full speed and “the demand is extraordinary”.

Data centre revenue from China in Q2 declined on a sequential basis to a low single-digit percentage.

CFO Colette Kress explained that while a few China-based customers received licences over the past few weeks, it has not shipped H20 chips based on the new permits.

Kress added: “We continue to advocate for the US government to approve Blackwell for China.”

With Chinese authorities pushing for its tech companies to avoid US chips and buy local alternatives, Nvidia last week ordered some of its suppliers to halt production work related to the H20, as it forecast lower demand.

Founder of industry blog Radio Free Mobile Richard Windsor wrote last week he doesn’t think losing the Chinese market will do Nvidia “any meaningful harm”, because what it loses in China it will make up elsewhere.