NVIDIA had the kind of week that makes investors’ hearts skip a beat—the good kind. The chip giant crushed Q1 earnings expectations while simultaneously getting hit with a China export ban. Somehow, the stock still jumped 5%. Welcome to the beautiful chaos of the market.
Here’s what went down: NVIDIA posted $44.1 billion in revenue, up a whopping 69% year-over-year and beating estimates of $43.3 billion. Net income hit $18.8 billion, and adjusted earnings came in at 81 cents per share—up 33% year-over-year. On paper, this is the kind of performance that makes Wall Street analysts weep with joy.
But here’s where it gets spicy. On April 9, the feds told NVIDIA it needed a license to export its H20 chips to China. Translation: a $50 billion market just got locked behind a door NVIDIA can’t open. The company took a $4.5 billion charge for excess H20 inventory and unfulfilled orders. That’s not chump change.
Yet investors didn’t panic. Why? Because the real money is flowing from data centers powered by NVIDIA’s new Blackwell chips. Data center revenue hit $39.1 billion—up 73% year-over-year. These aren’t just chips; they’re the infrastructure powering the AI revolution, and demand is absolutely insane. CEO Jensen Huang called it “incredibly strong,” which in corporate-speak means “we can barely keep up.”
Gaming chips also had a moment, bringing in $3.8 billion, up 42% year-over-year. Not bad for a side business.
For Q2, NVIDIA expects $45 billion in revenue—about 5% growth—but that’s accounting for roughly $8 billion in lost China sales. The company’s still printing money, just with one hand tied behind its back. Analysts responded with a flurry of price target upgrades, and the stock is now trading at $140 with a median target of $170.
The real story? NVIDIA’s dominance in AI infrastructure is so overwhelming that even losing an entire country’s market can’t derail the train. That’s either incredibly bullish or a sign that valuations have gotten a little too optimistic. Probably both.
