Nvidia's Jensen Huang Predicts 'Powerful New Wave of Growth'

Nvidia's quarterly earnings report exceeded expectations, with revenue climbing 69% to $44 billion and data center revenue surging 73% to $39 billion. CEO Jensen Huang stated that this is the "start of a powerful new wave of growth" and Nvidia is "off to the races" with multiple significant growth engines. The company's AI products and services continue to drive demand, with Huang highlighting Nvidia's role in both model training and inference reasoning. Despite export restrictions and tariffs, Nvidia's growth shows no signs of slowing down.

Nvidia's (NVDA) first-quarter earnings report for 2025 exceeded market expectations, with revenue climbing 69% to $44.1 billion, driven primarily by strong performance in the data center segment. Data center revenue surged 73% to $39.1 billion, highlighting the company's dominance in AI infrastructure [1].

CEO Jensen Huang described the results as the "start of a powerful new wave of growth" and emphasized Nvidia's role in both model training and inference reasoning, which continue to drive demand for the company's AI products and services [1].

Despite challenges posed by export restrictions and tariffs, particularly the $4.5 billion charge related to the H20 chips export ban to China, Nvidia's growth trajectory shows no signs of slowing down [1]. The company's vertically integrated platform, combining GPU architecture, CUDA software, and the Omniverse ecosystem, has created a near-impenetrable moat, making it difficult for competitors to match Nvidia's capabilities [2].

Looking ahead, Nvidia expects to take an $8 billion hit due to lost revenue from H20 sales in the current quarter but remains optimistic about its long-term growth prospects. The company projects quarterly revenue of $45 billion for the current quarter, plus or minus 2% [1].

Nvidia's strong performance in the gaming segment, driven by the launch of the RTX 5070 and 5060 graphics cards, also contributed to the overall revenue growth. The gaming PC sector revenue reached $3.8 billion, up 48% from the previous quarter and 42% from the same period last year [3].

Investors should closely monitor Nvidia's ability to navigate geopolitical risks and regulatory uncertainties, particularly regarding its operations in China. While the company has made strategic pivots to geopolitically stable markets, the long-term sustainability of its growth trajectory remains a concern [2].

References:
[1] https://finance.yahoo.com/news/nvidias-revenue-hits-record-high-210851106.html
[2] https://www.ainvest.com/news/nvidia-q1-fy2026-earnings-navigating-china-headwinds-ai-dominance-2505/
[3] https://www.pcguide.com/news/nvidia-announces-record-gaming-revenue-boost-following-rtx-50-series-with-switch-2-just-around-the-corner/