Key Stats for Nvidia Stock
- Today’s Price Change: 5%
- Current Share Price: $141
- 52-Week High: $153
- NVDA Stock Price Target: $163
What Happened?
Nvidia (NVDA) stock surged around 5% following strong first-quarter earnings that beat analyst expectations despite significant headwinds from Chinese export restrictions.
The AI chip giant reported adjusted earnings of $0.81 per share, versus estimates of $0.75 per share. Revenue in the April quarter stood at $44.06 billion, above estimates of $43.3 billion.
Nvidia’s data center division, which houses its AI chip business, delivered exceptional growth with revenue of $39.1 billion, up 73% year-over-year, accounting for 88% of total sales.
This performance was driven by continued strong demand for Nvidia’s Blackwell GPUs, which contributed nearly 70% of data center compute revenue as the transition from the previous Hopper generation nears completion.
However, the quarter was impacted by new U.S. export controls on China-bound H20 chips. Nvidia took a $4.5 billion inventory write-down and lost $2.5 billion in potential sales, with CEO Jensen Huang stating that the $50 billion China AI market is now effectively closed to U.S. industry.
Despite these challenges, the chip maker maintained strong guidance of $45 billion for the current quarter, which would have been approximately $8 billion higher without the China restrictions.
Nvidia’s Blackwell architecture continues to gain momentum. Major cloud providers, including Microsoft, are deploying tens of thousands of Blackwell GPUs and plan to scale to hundreds of thousands of GB200 systems.
Nvidia also reported strong sequential growth in networking revenue, which reached $5 billion, driven by demand for infrastructure connecting AI chip clusters.
See Nvidia’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us
The rally in NVDA stock indicates investor confidence in the company’s ability to navigate geopolitical headwinds while maintaining its leadership position in the AI infrastructure market.
The 73% growth in data center revenue, despite the impact of China, underscores the strong global demand for AI computing power.
Investors appear optimistic about the reasoning AI trend, which requires more compute power than traditional AI applications.
Nvidia highlighted that reasoning models like DeepSeek-R1 require hundreds to thousands of times more tokens per task, driving exponential growth in inference demand and creating new revenue opportunities.
The market also responded positively to Nvidia stock due to its expanding ecosystem beyond China, as the semiconductor heavyweight announced AI infrastructure projects in Saudi Arabia and the UAE, as well as growing adoption of its enterprise AI solutions.
The diversification into sovereign AI, enterprise deployments, and industrial applications provides multiple growth vectors for NVDA stock as AI adoption broadens across industries and geographies.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
