Nvidia Q2 FY2027: Rubin Ramp, Margins, and China Exclusion

The margin guidance signals a structural shift: Nvidia's hypergrowth phase is entering a cost-heavy transition where component pricing, not just demand, will dictate profitability. The explicit removal of China data center revenue from forward guidance is the more consequential signal, as it quantifies a geopolitical ceiling on the company's addressable market. For the broader AI trade, the Rubin ramp's success becomes the key variable—whether execution offsets margin pressure will determine if the sector's valuation narrative holds. Watch for supply-chain commentary on memory costs and any indication of China demand rerouting to alternative suppliers.