Nvidia delivered impressive Q1 results, showcasing an adjusted EPS of $0.96 on revenues of $44.06 billion. This performance exceeded market expectations but the company cautioned that U.S. export controls on its H20 chips to China will impact Q2 sales by about $8 billion.

Highlights from the Earnings Report

• Data Center Revenue: $39.1 billion, a 73% increase from the previous year

• Gaming Revenue: increased by 42% year-over-year

• Impact of China-related Charges: a $4.5 billion one-time hit

Nvidia’s CEO emphasized that AI infrastructure is still developing, with plans for further global rollouts of their AI factory capabilities.

Long-Term Outlook vs Q2 Challenges

While immediate challenges arise from the China export ban, investors remain focused on long-term growth opportunities. Key factors include:

• Future deployment of Blackwell GB200 systems.

• New revenue opportunities with non-HBM chips.

• Path toward recovery of gross margins.

Investors should prepare for Nvidia’s Q2 earnings call, a pivotal event to gauge the company’s ability to navigate these challenges and continue its upward trajectory.