Nvidia Forecasts Soaring Q3 Revenue Amid AI Chip Demand Surge

In August 2025, Nvidia, the leading AI chip maker, forecasts that its third-quarter revenue will exceed Wall Street estimates. The company expects revenue of $54 billion, plus or minus 2%, compared to the average analyst estimate of $53.14 billion.

The robust demand for Nvidia's advanced AI chips is fueling this impressive revenue forecast. Cloud providers are rapidly expanding their infrastructure to power the growing generative AI technology, and Nvidia's chips are in high demand to process the large amounts of data required.

However, Nvidia's business has been impacted by the ongoing trade tensions between the United States and China. The company has not assumed any shipments of its H20 chips to China in its Q3 outlook, and it has halted production of these chips for the Chinese market. This is due to restrictions imposed by the US government that have curbed Nvidia's sales to China.

Despite these challenges, Nvidia remains the dominant player in the AI chip market, with a significant portion of its $41 billion in data center revenue coming from large cloud service providers. The company's stock has gained over a third so far in 2025, outpacing the broader S&P 500 index.