Nvidia has once again stunned Wall Street with its latest earnings. The Nvidia stock earnings report, released on May 28, 2025, revealed explosive revenue growth—powered by the global rush into AI—but not without some turbulence. Despite facing a multibillion-dollar setback from U.S. export restrictions to China, Nvidia’s performance confirms that the AI chip boom is far from slowing down. The stock jumped over 5% in after-hours trading following the announcement, reflecting investor confidence.
Let’s dive into the major takeaways from Nvidia’s Q1 2026 earnings report and explore how the chip giant is navigating the future of artificial intelligence amid global regulatory pressure.
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Stunning Growth in Nvidia Stock Earnings Report
The latest Nvidia stock earnings report showcased a 69% year-over-year jump in total revenue, bringing in a staggering $44.1 billion for the first quarter of fiscal year 2026. This was fueled almost entirely by its AI-powered data center segment, which alone contributed $39.1 billion, representing a 73% increase.
Here’s a quick snapshot:
| Category | Q1 FY26 | YoY Growth |
|---|---|---|
| Total Revenue | $44.1B | +69% |
| Data Center Revenue | $39.1B | +73% |
| Adjusted EPS | $0.81 | N/A |
However, the earnings per share came in slightly below expectations, largely due to a $4.5 billion charge from unsold AI chips intended for China.
Despite this, CEO Jensen Huang remained optimistic, pointing out that demand across North America, Europe, and the Middle East continues to outpace supply.
AI Chip Boom: Blackwell and Global Demand
Nvidia’s newly released Blackwell architecture chips are already generating massive interest from cloud providers and enterprise clients. Analysts are projecting these chips could bring in over $200 billion in revenue over the next two fiscal years.
Here’s what’s fueling the optimism:
- AI infrastructure spending is at an all-time high—from startups to governments.
- Cloud giants like AWS, Microsoft Azure, and Google Cloud are scaling up rapidly.
- Global reach is expanding beyond the U.S., especially in Saudi Arabia and Taiwan.
The company also announced plans for a new quantum computing lab in Boston, further broadening its technology ecosystem.
This massive demand helped balance the blow from export-related losses, showing that Nvidia’s growth story is far from over.
China Export Restrictions Cast a Long Shadow
A major concern from this Nvidia stock earnings report was the impact of tightened export restrictions to China. Due to new U.S. policies introduced in April 2025, Nvidia’s H20 chips—designed specifically for China—were hit with licensing requirements that caused delivery delays and cancellations.
This led to:
- $4.5 billion inventory write-down for H20 chips
- $2.5 billion in missed Q1 shipments
- Expected $8 billion revenue loss in Q2 2026
Jensen Huang voiced concerns that these policies could weaken U.S. leadership in AI. According to him, cutting China off from American chips might push Chinese firms to develop competitive domestic technologies faster.
Despite these geopolitical hurdles, Nvidia has no plans to slow down. It’s aggressively expanding into other fast-growing markets to diversify its revenue streams and reduce dependency on China.
What It Means for Investors
For those tracking the Nvidia stock earnings report, here’s what to keep in mind:
- Strong core fundamentals: Revenue growth remains robust, particularly in data centers and AI.
- Short-term headwinds: Regulatory risks are real, especially with China.
- Long-term vision: Nvidia is betting on global expansion, next-gen chips, and even quantum computing.
So while the China situation presents a temporary cloud, Nvidia’s long-term forecast still looks bright. Investors appear to agree, given the immediate stock rally after the earnings report.
Final Thoughts: Nvidia’s AI Journey Is Just Beginning
This Nvidia stock earnings report confirms that the company is still riding high on the AI wave, even as it dodges geopolitical storms. With cutting-edge chips, worldwide demand, and bold innovation, Nvidia continues to lead the semiconductor race.
As long as demand for AI infrastructure grows, Nvidia’s dominance won’t just hold—it’ll likely expand. Investors should expect short-term bumps, but long-term gains look strong.
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