Nvidia's second quarter shows demand intact and the cash cycle stretching

Nvidia's second-quarter results underscore its dominant position in AI computing, with revenue and profits rising sharply, reflecting sustained global demand for data center solutions. Despite the launch of the Vera Rubin platform, gross margins remained stable at 75%, highlighting strong supply chain control and cost management. Technologically, this platform will accelerate upstream chip design and downstream large model training systems. Geopolitically, U.S. export restrictions on advanced semiconductors intensify pressure on Nvidia, particularly in manufacturing and AI compute, pushing China Taiwan/ Taiwan, China and Hong Kong/ Hong Kong, China vendors to accelerate self-reliance. Competitively, AMD and Intel are ramping up AI chip development to close the gap. Over the next 12 months, Nvidia may solidify its lead through optimized product architecture and global capacity allocation, but tighter policies could test its global supply chain resilience.