NVIDIA, as you may know by now, reporting that top and bottom line beat for the second quarter,

though, surprising the street with this narrow miss on data center revenue and a forecast of decelerating growth. For today's tech check, our Christina Parts of Nevelos looks at the China overhang on that print last night. Hey, K.P. Hi. Well, Invidias, Jensen Wong is pushing what what Bush's Matt Bryson calls, quote, GPU panda diplomacy,

which is really borrowing from China's famous strategy of using cuddly pandas as diplomatic tools,

but just in reverse.

Jensen Wong definitely is lobbying Washington to let American AI chips flow to China while actually

proving his company doesn't need Beijing to survive. Despite losing

$4 billion in blocked H20 chips last quarter due to export controls, Nvidia still crushed

earnings, guided higher, like you mentioned, Carl. But today's stock drop really reflects what's

becoming a familiar pattern, beats that just don't blow away increasingly sky-high expectations.

But China does remain the elephant in the room. On the earnings call, Wong hinted at White

House approval for next generation blackwall exports. These are chips, calling it, quote,

a real possibility. In other words, or translation, he's been lobbying President Trump and feels confident

about getting the green light in the near future. The stakes, though, are massive. Management

says if regulations ease, H20 chips could alone generate $2 to $5 billion in quarterly revenue,

and that doesn't include the potential black whale sales should they get approved and go to China.

We're talking about NVIDIA slice of China's $50 billion AI chip market, which by the way,

Jensen Wong put that 50 billion number, and it's a market that he says will keep expanding.

Right now, it's a total game of cat and mouse between Washington and in Beijing, with both governments

using chip exports as leverage in broader trade negotiations.

The good news though for NVIDIA, their base case doesn't need China.

But if those export restrictions lift, China becomes the ultimate tail win for the stock that's

already proven it can dominate without it.

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