Bloomberg Intelligence Nvidia Forecasts Decelerating Growth After Two-Year AI Boom
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Aug 28, 2025 Nvidia reveals a cautious revenue forecast, hinting at a slowdown after a two-year AI boom. Retail giants struggle with mixed sales results, with Dollar General adjusting strategies amidst rising costs. Best Buy's long-awaited sales increase faces tariff challenges ahead of the holidays. Meanwhile, Dick's Sporting Goods' acquisition of Foot Locker raises concerns about management's plans for turnaround. The discussion also highlights the resilience of database companies and the potential impact of AI innovations on various sectors.
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Nvidia's Guide Masked Strong Underpinnings
- Nvidia's results checked key boxes but missed sky-high expectations, creating noisy market reactions.
- Networking beats and China guidance show underlying strength despite perception of a softer guide.
China Revenue Hinges On Regulatory Clarity
- Nvidia guided $2–5 billion of China revenue next quarter, signalling limited but tangible shipment expectations.
- Full China scale depends on a government-approved Blackwell China chip and easing geopolitical roadblocks.
Two-Pronged Competitive Threat To Nvidia
- Merchant GPUs are dominated by Nvidia with AMD a distant second, while hyperscaler ASICs pose a wallet-share risk.
- ASICs won't take sockets but can reduce spending on merchant GPUs over time.