Nvidia Beats Revenue Expectations but Faces Major China Setback
Nvidia has reported record-breaking Q1 revenue of $44.1 billion, surpassing Wall Street’s forecast of $43.25 billion.
The figure marks a 12% jump from the previous quarter and a staggering 69% increase year-over-year. Despite the strong top-line performance, the company is facing mounting pressure from geopolitical hurdles and slowing momentum in key international markets.
A major blow came from new U.S. export restrictions to China, which prevented Nvidia from shipping $2.5 billion worth of H20 AI chips in the quarter. The company also took a $4.5 billion charge tied to unsold inventory and purchase obligations after Washington required a license for shipments of its H20 products to China. In total, Nvidia estimates it lost around $8 billion in potential revenue due to the impact of the trade restrictions and the abrupt drop in Chinese demand.
On the bottom line, the company posted GAAP earnings per share (EPS) of $0.76 and non-GAAP EPS of $0.81—both exceeding the expected $0.75. Without the China-related write-down, Nvidia said non-GAAP EPS would have reached $0.96, and margins would have climbed above 71%.
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Nvidia founder and CEO Jensen Huang remained optimistic, emphasizing the company’s leadership in AI infrastructure. He highlighted the rollout of the Blackwell NVL72 AI supercomputer, now in full-scale production, and positioned Nvidia as central to a global push toward AI as a foundational technology.
However, not all analysts are convinced. Bloomberg senior analyst Jay Goldberg believes the company’s rapid growth has hit its limits. Calling the stock a “sell,” he warned that Nvidia is facing too many simultaneous challenges to continue outperforming expectations.
Shares were trading at $138.83 after hours, up 2.9% despite the headwinds. Investors are now awaiting a scheduled interview with CEO Jensen Huang set to air in three hours, where he is expected to provide more context on the China situation and Nvidia’s forward strategy.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
