Nvidia explosion: Sales increase by 56% despite China ban!

Nvidia explosion: Sales increase by 56% despite China ban!

On August 28, 2025, Nvidia presented impressive quarterly figures that are characterized by a rapidly growing need for special processors for artificial intelligence (AI). The company's sales rose by 56 percent to 46.74 billion dollars (40.10 billion euros). Compared to the previous quarter, this represents an increase of six percent. Sales with the new “Blackwell” chip generation even increased about three times as much, which underlines Nvidia’s dominance in the AI ​​market. Second-quarter earnings beat market expectations at $1.08 per share. For the current quarter, Nvidia expects revenue of $54 billion, plus or minus two percent, even though its China business has collapsed due to US export restrictions on high technology.

No AI chips were delivered to China in the second quarter, and Nvidia also expects a complete failure in this market in the current quarter. This is particularly challenging due to the US government's tightened export restrictions, which have banned the sale of the H20 AI chip developed specifically for China. If Nvidia wants to resume deliveries, the company will have to pay 15 percent of its revenue to the US treasury. Analysts estimate that this could reduce the profit margin by one percentage point.

Technological progress and market dominance

Nvidia remains the market leader, dominating around 70 to 95 percent of the AI ​​training chip market. The latest development in Nvidia's chip technology is the Blackwell Ultra GPU, which is an important part of the Blackwell architecture family. These graphics units accelerate AI training and reasoning through innovative silicon technologies and system integration, which contributes significantly to increasing efficiency in AI factories.

The Blackwell Ultra GPU, made with TSMC 4NP, contains 208 billion transistors - 2.6 times more than the previous generation Hopper. With a dual-reticle design and connectivity via the NVIDIA High-Bandwidth Interface (NV-HBI), which offers 10 TB/s of bandwidth, it enables improved throughput and latency for AI applications. These GPUs come with up to 288GB of HBM3e per unit and offer 8TB/s bandwidth, a 2.4x improvement over the H100. This latest technology ensures Nvidia remains at the forefront of the competition while companies like AMD and Intel also develop specialized chips.

Geopolitical challenges and market trends

The semiconductor and AI market is in focus due to increasing investment in AI infrastructure, which is expected to exceed $155 billion in 2024. In parallel with market developments, patent applications in the AI ​​and semiconductor segments also recorded an increase of over 50 percent within a year. The challenges associated with increasing material and production costs as well as manufacturing complexity are impacting the entire industry. Geopolitical risks, particularly in the US-China-Taiwan conflict, also impact the supply chain, while over 90 percent of AI GPU production is in the hands of Nvidia.

The US government has also invested over $50 billion in AI-driven semiconductor development in recent years to ensure technological competitiveness. Nvidia's CEO, Jensen Huang, said the company has numerous H20 processors in stock and is waiting for Chinese orders. It remains to be seen how the dynamics between the US and China will evolve and what impact this will have on the global AI and semiconductor markets.