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North American hyperscalers doubled GPU revenue YoY; Chinese hyperscalers significantly slowed infrastructure investment in Q2
Jensen Huang· NVIDIA· AI· 2022-08-25· about NVIDIA (NVDA)
“Revenue from hyperscale customers nearly doubled year on year... Sequentially, sales to North America hyperscale and cloud computing customers increased but were more than offset by lower sales to China hyperscale customers affected by domestic economic conditions. The Chinese hyperscalers and the Chinese Internet companies really, really slowed down infrastructure investment this year, particularly starting in... really slowed down in Q2.”
Why it matters
Regional divergence in hyperscaler capex: North America accelerating, China contracting. This suggests uneven demand for AI infrastructure components and services by geography and may indicate China's domestic AI buildout is pausing.
Investment implication
U.S.-based cloud providers (AWS, Microsoft Azure, Google Cloud) are prioritizing AI capex while Chinese cloud providers are deferring. U.S.-focused data center operators and infrastructure vendors will see stronger near-term demand; China-exposed suppliers face headwinds.