Nvidia’s Q1 Earnings Show Business Is Still Booming Despite Being Shut Out of China

EARNINGS
Nvidia’s Q1 Earnings Show Business Is Still Booming Despite Being Shut Out of China

Nvidia just reminded Wall Street why it’s the crowned king of AI chips.

The company reported Q1 revenue of $44.1 billion, topping estimates of $43.3 billion and marking a massive 69% jump from last year. Adjusted EPS landed at $0.81 (excluding a $4.5 billion impairment tied to U.S. export bans on China), just shy of the $0.93 consensus. Despite the China headache, Nvidia shares popped over 5% in after-hours trading, showing investors are still laser-focused on the company’s global AI dominance.

Gaming Boost, AI Firepower

Interestingly, Nvidia’s surprise strength this quarter came from its old-school gaming business — not just AI. Gaming sales surged to $3.8 billion, beating expectations by 32%, while data center revenue (its largest unit) came in slightly below estimates at $39.1 billion. Nvidia also flexed its latest Blackwell chip lineup, signaling it’s ready to meet skyrocketing AI demand across regions like the Middle East and Europe, even as China’s $50 billion AI market slips out of reach under U.S. export rules.

Looking Ahead: Bigger Than Just Numbers

For Q2, Nvidia projects $45 billion in revenue (give or take 2%) and a solid 72% gross margin. While some analysts call that guidance a touch conservative, it’s worth noting the company openly factored in the $8 billion sales hole left by the China ban — making its resilience in other markets all the more impressive. Bloomberg Intelligence estimates that even without China, Nvidia is managing to pull in revenue just $3 billion shy of where consensus stood before the export restrictions hit, thanks to roaring demand for Blackwell chips.

Jensen Huang, Nvidia’s CEO, framed the moment as much bigger than chip sales: “Every nation now sees AI as core to the next industrial revolution — a new industry that produces intelligence and essential infrastructure for every economy.” That’s not just earnings-call hype; Nvidia is actively ramping up deals in the Middle East and Europe, positioning itself as the go-to supplier for sovereign AI ambitions worldwide.

In short? Even if the U.S.-China tech cold war drags on, Nvidia has built a global empire ready to weather it. Markets heard the message loud and clear — and they’re rallying right alongside.

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