NVIDIA's Most Recent AI Processor Debuts amidst Anticipation Pre-Earnings Statement Release

NVIDIA, the leading American technology company specialising in graphics processing units (GPUs) and artificial intelligence (AI) technology, is gearing up to report its second quarter earnings on Wednesday, August 27. The company finds itself in a complex position, balancing surging demand from Chinese clients with tightening US restrictions.

According to reports, US Commerce Secretary Howard Lutnick has acknowledged that NVIDIA Chief Executive Jensen Huang has been lobbying aggressively. The specifics of who supports Huang in these lobbying activities remain undisclosed.

Amidst these negotiations, NVIDIA is preparing a new AI chip called the B30A. This chip, based on NVIDIA's latest Blackwell architecture, is expected to offer more power for Chinese clients. KeyBanc analyst John Vinh believes that if NVIDIA were to include China in its future guidance, it could contribute an incremental US$2-3 billion in revenue.

NVIDIA has not confirmed the project, but has stated that everything they offer is with the full approval of the applicable authorities and designed solely for beneficial commercial use. The new chip, like the H20, is rumoured to include high-bandwidth memory and NVLink interconnect technology.

The company's supply of new Blackwell B200 GPUs is estimated to increase another 20 percent in Q3. This ramp-up of the new GPUs reinforces NVIDIA's dominance in the market, a dominance that Morgan Stanley recently called the most undervalued mega-cap stock in the market.

KeyBanc has raised its Q2 revenue forecast for NVIDIA to US$47.1 billion, ahead of Wall Street's consensus. They now expect NVIDIA to ship 30,000 units of its high-end GB200 rack systems this year, up from a prior forecast of 25,000. Morgan Stanley cited NVIDIA's strong position in AI accelerators and the growing appetite for AI-driven computing power across multiple industries as reasons for its bullish stance.

US President Donald Trump is open to the possibility of more advanced NVIDIA chips being sold to China, despite the 15 percent levy on Chinese chip sales to the US government that NVIDIA is expected to continue paying. The B30A is expected to deliver roughly half the computing power of NVIDIA's flagship dual-die B300 accelerator card.

Wall Street expects NVIDIA to post another blockbuster quarter with earnings per share up 48 percent on revenue of about US$45.9 billion. KeyBanc has lifted its price target for NVIDIA to US$215 from US$190.

As NVIDIA prepares to report its earnings, the future of its relationship with China and the US government remains uncertain. However, one thing is clear: NVIDIA's position as a leader in AI technology and its strong demand from clients worldwide continue to drive its success.