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nvidia (NASDAQ:NVDA) Stocks won a great lift today (May 29th). As I write, it’s 4.2% higher across the pond after the company released its first quarter of 2026 revenue.
This will give the legendary chipstock 9% off its 52-week high of $153. This is why I think it will soon notch into another historical record.
Go for a walk
There are companies that talk good games, but their actual outcomes are overwhelming. Then there are companies that let you have a conversation about their impressive financial results.
Nvidia does both. On the subject, CEO Jensen Huang has layered Q1.Countries around the world recognize AI as an essential infrastructure – like electricity and the Internet – Nvidia stands at the heart of this deep transformation. ”
The result is a backup of this. Revenues exceeded expectations, up 69% last year to $44.1 billion, surpassing expectations, earnings per share (EPS) rose 33% to $0.81. Data Center Revenue, UP 73%totaling $39.1 billion.
The data center division is naturally in the spotlight given that it is a place where all the exciting AI growth is taking place. However, gaming and AI PC units rose 42% to record revenues at $3.8 billion, while automobile and robot revenues rose 72% to $567 million.
So it would not be an exaggeration to say that Nvidia is firing on every cylinder.
That said, the company has earned a $4.5 billion hit after amortizing its H20 chip inventory due to new export restrictions to China. Excluding the associated tax impact, the EPS figure was $0.96. The hit was an unfairly low $1 billion, as H20 chips could be sold or reused.
Looking ahead to the second quarter, management expects revenues of around $45 billion, reflecting the $8 billion loss in China’s revenues from export curbs.
China’s competition
That should be noted S&P 500 It’s happening today after the US Trade Court has blocked most of the tariffs on President Trump’s “liberation day.” Investors are rooting for this, but in reality it will probably create more trade uncertainty.
In the revenue call, Huang said:Export restrictions have encouraged China’s innovation and scale.“
In my opinion, the real risk here is not just the losses in China’s business, which accounts for around 12.5% of revenue. It is a real possibility that China’s chip rivals will appear in the future to challenge Nvidia at the global stage.
a byd To nvidia’s Teslaas is.
Sovereign AI
For now, however, Nvidia has dominated Supreme, with the quarter featured a regular parade of top-tier partnerships and cutting-edge innovation.
Nvidia has announced NVLink Fusion, an interconnected technology that enables partners to build semi-customer AI infrastructure within a broader ecosystem. Joint venture with General Motors and alphabet Advances various AI-based initiatives. The list continues.
Additionally, supercomputers will be built at Saudi Arabia’s US and Taiwan AI factories on a huge 10-square-mile AI infrastructure campus in the UAE. Management says that Japan, South Korea, India, Canada and many of Europe are currently building AI infrastructure.
After a 29% rise in May, Nvidia shares aren’t as cheap as they used to be. However, there is global demand for the company’s AI infrastructure.Incredibly strong“And I think Nvidia will be gaining higher from here on out as a new growth engine, sovereign AI.
Therefore, it is worth considering for long-term investors.
