Caixin Network, August 28th (Reporter: Liu Rui) After the earnings call on Wednesday, NVIDIA CEO Huang Renxun called on President Trump to open the door for NVIDIA to enter the Chinese market as soon as possible.

He stated that U.S. technology companies should not be excluded from the Chinese market; they need to become global standards, just like the U.S. dollar is the largest reserve currency in the world.

"President Trump understands that the U.S. AI technology stack should become the world standard. Just as the U.S. dollar is the standard on which the world economy is built, we hope the U.S. AI technology stack will lay the foundation for the world's technology and industry, including China," said Huang Renxun.

Restarting the Engine for Entering the Chinese Market

Huang Renxun stated that NVIDIA is "restarting" the engine for selling chips to China. Huang Renxun added, "We have obtained the license to ship to China, and now we are looking for orders in China."

The company reported that revenue from its data center segment reached $41.1 billion in the second quarter. The same department earned $26.2 billion during the same period last year. These figures do not include sales of the H20 chip in China.

The company also released an expectation of $54 billion for the third quarter, with a margin of 2%, which also does not include sales to China. Huang Renxun stated that any additional sales from China would be an "additional bonus."

"If U.S. technology companies can enter the Chinese market, we have every chance to succeed there. So I hope this issue can be resolved."

During the company's earnings conference call, NVIDIA's CFO Colette Kress explained that the company is still waiting for the Trump administration to formally sign the agreement, under which NVIDIA will pay 15% of its sales in China to the Trump administration.

Huang Renxun stated that although the company is cooperating with the Trump administration on China-related issues, it has not considered a type of agreement similar to the one Intel reached with Washington. Recently, to stabilize its foundry and chip business, Intel sold 10% of its shares to the Trump administration.

More Opportunities in Networking and Gaming

Huang Renxun also discussed opportunities in the networking field. The company classifies its networking business under its data center division. In the second quarter, NVIDIA's networking revenue was $7.2 billion, an increase of 98% year-over-year.

"The annualized growth rate of our Ethernet product line has reached $10 billion, and this is just the beginning. Networking will become an important part of our business. This is a fundamental recognition of the integration of computing, networking, and software."

Meanwhile, NVIDIA's gaming business exceeded Wall Street's expectations in the second quarter. Huang Renxun stated that this is attributed to the success of NVIDIA's own GeForce graphics chip series, as well as the sales of the Nintendo Switch 2 equipped with NVIDIA processors.

Huang Renxun stated that, just as the company started with gaming and applied its technology to artificial intelligence, it will bring artificial intelligence into gaming to enhance overall performance and capabilities.

"Artificial intelligence will return to GeForce, bringing revolutionary changes to gaming. I am truly proud of the Switch and GeForce."

(Caixin Network, Liu Rui)

Original article: https://www.toutiao.com/article/7543484593328882186/

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