NVDA: Nvidia Stock Powers Up 5% as Chip Maker Tops Earnings Views, Cites China Troubles

Huang’s business might get hit with more than $10 billion in missed revenue thanks to Trump’s H20 China ban. Still, it can’t complain about chip demand.

📈 Nvidia Shares Rise on Earnings Release

• Nvidia NVDA stock popped 5% in after-hours trading Wednesday after the company blew past earnings estimates with another hulking report — and despite a costly China business that could total $10.5 billion in lost revenue over two quarters.
• But even with that baked into the outlook, investors were happy to shrug off a few billion in lost opportunities and ride out that thermonuclear demand that shows no signs of stopping. Let’s talk numbers.

💥 Blockbuster Report — Yes, Please

• Revenue came in hot at $44.1 billion, up a scorching 69% from a year ago and comfortably ahead of the $43.3 billion consensus estimate. The growth was largely driven by skyrocketing demand in AI data centers, which now make up the bulk of Nvidia’s revenue stream.
• Adjusted earnings per share landed at 81 cents, up 33% year over year and handily beating the 73-cent estimate. Operating margins improved despite regulatory pressure and supply chain juggling, showing Nvidia’s still got efficiency muscle.
• Data center revenue exploded to $39.1 billion, up 73% year over year. That accounts for nearly 90% of Nvidia’s total quarterly sales (not into revenue diversification, are we?). Nearly half of that is coming from tech titans like Amazon AMZN, Google GOOGL, and Microsoft MSFT.

🎁 Guidance Misses, But Who Cares?

• Nvidia’s Q2 revenue guidance came in at a midpoint of $45.0 billion, falling short of the $45.9 billion expected. That outlook includes an $8 billion hit due to the US export ban on the H20 AI chips sold to China. Add that to the $2.5 billion impact last quarter and you’ve got a $10.5 billion China-shaped crater.
• No reason to panic — not with Blackwell Ultra chips already shipping to early customers and ramping up for broader release this quarter.
• In typical bullish style, CEO Jensen Huang said that “global demand for Nvidia’s AI infrastructure is incredibly strong.” He added that AI agents are going mainstream, and with that shift, demand for Nvidia’s compute infrastructure will only accelerate.