01:11 PM EDT, 08/21/2025 (MT Newswires) -- Nvidia's ( NVDA ) fiscal second-quarter results will likely top consensus estimates amid a sharp annual revenue gain in the data center division, Oppenheimer said in a note e-mailed Thursday.

The tech bellwether is scheduled to report Wednesday.

Oppenheimer raised its non-GAAP earnings estimate to $1.02 a share from $0.98 for the second quarter. The brokerage expects net sales of $46 billion. The current consensus on FactSet is for adjusted EPS of $1.01 and sales of $45.90 billion.

The data center segment's revenue likely jumped 55% year over year in the quarter, despite a ban on H20 chip sales to China that took effect in April, Oppenheimer analysts, including Rick Schafer, said.

In April, the US government informed the chipmaking giant that it required a new license to export H20 products to China. The company said last month that it was filing applications to resume sales of the H20 graphics processing units in China and that it had received assurance from the US government that licenses would be granted.

Earlier in August, Nvidia ( NVDA ) and Advanced Micro Devices ( AMD ) reportedly agreed to give 15% of their artificial intelligence chip sales in China to the US government, as part of a deal to get export licenses.

Schafer projects a backlog of more than $16 billion for H20 chips in April, saying that Nvidia ( NVDA ) will likely increase prices to offset the 15% payment to the Trump administration.

The company is developing a new chip for China that will be more powerful than the H20 model, Reuters reported Tuesday, citing two people briefed on the matter.

"H20 and (the expected) China-compliant Blackwell (stock keeping unit) provide incremental upside optionality" to data-center revenue, Schafer said.

Oppenheimer reiterated its outperform rating on the Nvidia ( NVDA ) stock, with a $200 price target.

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