Investors may have thought they missed nvidia (NVDA) -2.85%)) Yesterday, the stock came out of its first quarter income report for 2026. But what’s the difference in a day? Anyone who regrets losing their profits yesterday has another chance.
Nvidia’s shares fell 2.9% in Friday’s session. This is roughly in line with the location that was closed before yesterday’s revenue pop. There was good reason for the movements on both days.
Image source: Getty Images.
Nvidia’s revenue was strong
Advanced semiconductor chips and artificial intelligence (AI) software companies exceeded expectations for record first quarter revenue with a record revenue of $44.1 billion. However, there was a bit of an asterisk in the results. Restrictions on exporting H20 chips to China required a quarterly bill of $4.5 billion.
China is a meaningful market for Nvidia as sales accounted for 13% of total revenue last year. The company is also planning to lose more sales. Second quarter guidance included an additional $8 billion loss in H20 revenue. However, management believes that record quarter revenues are likely to be in the current quarter. With business humming across all cylinders outside of China, investors were excited to jump into stocks yesterday.
China still weighs heavier Nvidia stocks
However, China also played a major role in today’s stock decline. Trump has shown trade tensions are once again strengthening as China claimed it had violated an agreement held in Geneva earlier this month.
In a quarterly appeal to investors, CEO Jensen Fan noted the representative impact of Chinese market losses. He said,But today, the $50 billion Chinese market is effectively shut down for the US industry. H20 export Van has ended its Hopper Data Center business in China. ”
With tensions igniting again this morning, investors may think the market is not open anytime soon. That was the seller outperforming buyers today. However, Nvidia is still growing. There are many other irons in the fire. Also, for now, we are counting sales in China. It could even lead to further future benefits of stocks.
