Nvidia’s shares took a hit on August 27, 2025, dropping about 3% in after-hours trading despite reporting stellar Q2 earnings. The chip giant posted $46.7 billion in revenue, a 56% year-over-year surge, beating expectations and announcing a $60 billion stock buyback. However, a narrow revenue miss in data centers and a lackluster Q3 forecast fueled investor jitters, with shares closing around $182 after reaching an all-time high of $184.48 earlier in the month. Analysts point to uncertainties in China, where U.S. export restrictions on advanced chips loom large, contributing to the dip.
This volatility comes amid China’s explosive AI growth, part of its “Made in China 2025” initiative backed by over $1.5 trillion in investments for R&D and infrastructure. Beijing’s AI+ Initiative promotes widespread adoption, with the industry projected to balloon from $3.2 billion in 2024 to $140 billion by 2030; and up to $1.4 trillion including related sectors. Chinese firms are leveraging open-source AI to close the gap with Silicon Valley, boasting over 4,300 AI companies and a user base of 250 million by February 2025. Government reports emphasize self-reliance in chips and large language models, accelerating progress despite U.S. curbs.
In a post-earnings interview, Nvidia CEO Jensen Huang addressed these dynamics head-on. He dismissed fears of an AI slowdown, stating, “We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade,” and affirmed the boom is “far from over.” On China, Huang highlighted a “real possibility” of bringing the Blackwell AI chip there, compliant with U.S. regulations, and advocated for the U.S. tech stack as a “global standard” that companies worldwide (including in China) should build upon. He also touched on U.S. politics, noting President Trump’s push for America to “win the AI race,” while expressing optimism about Nvidia’s role in data centers and gaming.
As Nvidia navigates geopolitical tensions, China’s AI ascent underscores a shifting landscape. While short-term stock wobbles persist, Huang’s vision signals sustained demand, positioning Nvidia at the heart of global AI innovation.
