Bloomberg Tech Instant Reaction: Nvidia Gives Lukewarm Forecast, Stoking Fears of AI Slowdown
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Aug 27, 2025 Mandeep Singh, Global Head of Technology Research at Bloomberg Intelligence, and Jay Goldberg, Senior Analyst for Semiconductors & Electronics with Seaport Research Partners, dive into Nvidia's lukewarm revenue forecast, raising alarms about AI spending sustainability. They analyze how Nvidia's struggles in the Chinese market impact its business outlook. The discussion covers hyperscale companies' capital expenditures and the evolving AI investment landscape, as optimism wanes amid uncertainties in data center demand.
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Deceleration In Data-Center Growth
- Nvidia reported $46.7B revenue with $41.1B from data center but guided only $54B next quarter, prompting investor concern.
- The market reacted because sequential data-center growth slowed to mid-single digits, signaling deceleration from prior double-digit gains.
Blackwell Margins Look Good, But Uncertainty Remains
- Blackwell architecture is ramping with gross margins expected to exit the year in the mid-70s.
- Still, aggregate revenue wasn't a large beat and lack of China color added uncertainty for investors.
China Access Is A Major Wildcard
- Demand for Blackwell exists in China but shipments depend on export approvals, so China sales are unclear.
- H20 sales to non-China customers were small and carry lower margins versus H100 variants.