Nvidia Q1 Earnings Beat but China Export Ban Trims Q2 Outlook

Nvidia (NASDAQ: NVDA) delivered another stellar quarter, with Q1 adjusted EPS of $0.96 on $44.06 billion in revenue—surpassing Street estimates of $0.93 and $43.31 billion. However, the company cautioned that U.S. export controls on its H20 chips to China will reduce Q2 sales by about $8 billion, setting guidance at $45 billion ± 2% versus the $45.66 billion consensus.

Q1 Highlights: AI Demand Powerhouse

• Data Center Revenue: $39.1 billion, up 73% YoY

• Gaming Revenue: +42% YoY

• China-Related Charge: $4.5 billion one‑time hit, partially offset by repurposed H20 components

CEO Jensen Huang emphasized that “AI infrastructure is still in its infancy,” promising further “AI factory” rollouts globally.

Why Q2 Guidance Matters Less Than Long‑Term Catalysts

With the immediate China headwind factored in, investors will focus on:

• Blackwell GB200 Deployment: Clarity on rack‑system shipments and customer timelines.

• Alternate China GPU Revenues: Progress on non‑HBM chips to recapture lost sales.

• Margin Recovery Path: Rebound toward mid‑70% gross margins over upcoming quarters.

Upcoming Nvidia Events

Don't miss Nvidia's Q2 earnings release—scheduled for Wednesday after market close. Add it to your calendar here:
Nvidia Q2 Earnings Release Date

Analyst Price Target Consensus

Despite the guidance headwind, Wall Street remains optimistic about Nvidia's long‑term prospects. You can explore the full range of analyst forecasts and see the $675 consensus target here:
Review Nvidia's Analyst Price Targets

With Q1 outperformance and robust AI demand, Nvidia's upcoming earnings call will be a critical barometer for how swiftly it can navigate export restrictions and ramp next‑generation Blackwell systems.