Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors

every morning. Good morning. Today is Thursday, August 28th, and I'm your host, Kim Khan, filling in for

Julie Morgan. Invita remains under pressure in pre-market trading today as questions about its China

sales, overshadowed consensus-beating Q2 numbers on the top and bottom lines and a $60 billion share

buyback. After the Bell Wednesday, the chip company reported EPS of 105, topping the consensus

of $1.7.7 billion. Revenue of $46.74 billion came in $610 million above expectations.

But while data center revenue jumped 56% from the year ago period, the $41.1 billion reported was a tad below the $41.29 billion estimate.

The company said it did not have any H20 sales to China-based customers in the second quarter,

but it did benefit from $180 million release of previously reserved H20 sales to China-based customers in the second quarter, but it did benefit from

$180 million release of previously reserved H-20 inventory from approximately $650 million in

unrestricted H-20 sales to a customer outside China. Looking at the third quarter of fiscal

2026, Invidia expects to generate $54 billion in revenue plus or minus 2%.

But crucially, this guidance does not include any H20-related revenue to China.

Analysts were forecasting $53.46 billion in revenue with estimates up to $60 billion.

Seeking Alpha analyst Jack Bowman says, one thing to watch is future sales to China, which

Nvidia is estimating it zero currently.

If their sales to China are able to surprise next quarter, that could be a huge catalyst

moving forward.

SA analyst Agar Capital notes, the company has posted record revenues and given strong guidance

for the next quarter without a single sale in China.

If this is the baseline, even a partial return of the Chinese market,

despite the 15% export fee, would represent a significant upside.

...