Why Nvidia’s Q1 Results Signal a Golden Entry Point for AI Dominance

The semiconductor industry has long been a battleground for global tech supremacy, but the May 2025 U.S.-China tariff truce has flipped the script. For NVIDIA (NVDA), this strategic ceasefire—coupled with its dominance in AI chip design and the $16 billion AI GPU orders flooding from China—creates a once-in-a-decade opportunity to buy the AI king at a discount before its Q1 earnings on May 28. Here’s why this is a “Buy Now” moment.

1. The Tariff Truce: A $16 Billion Tailwind Unleashed

The U.S.-China tariff truce, reducing levies from 145% to 30%, has removed a critical barrier to China’s insatiable demand for AI infrastructure. Chinese tech giants like Alibaba, Tencent, and ByteDance have already placed $16 billion in orders for NVIDIA’s H20 GPUs, a figure exceeding its entire 2024 China revenue ($17.1 billion). This isn’t just a one-off purchase—it’s a strategic bet on NVIDIA’s chips to fuel the next wave of generative AI models, such as Alibaba’s Qwen and DeepSeek’s low-cost alternatives.

The tariff reduction cuts the cost of these orders by ~75%, making China’s AI ambitions economically feasible. As the world’s largest market for AI hardware, this region’s re-opening to NVIDIA’s products is a game-changer.

2. Q1 Earnings: 65% Growth Awaits—Driven by Data Centers and Blackwell Chips

NVIDIA’s Q1 (ending April 2025) is expected to deliver $43 billion in revenue, a 65% year-over-year surge, fueled by:
- Blackwell Chip Adoption: The most advanced GPUs for generative AI are now powering 90% of top-tier AI models, with annual sales projected to hit $191.8 billion by FY2026.
- Data Center Dominance: Hyper-scale cloud providers like Amazon, Microsoft, and Alphabet are racing to expand AI infrastructure, with NVIDIA commanding ~80% market share in AI GPUs.

Analysts at Zacks have already ranked NVIDIA as a #1 Strong Buy, citing its “moat around AI hardware.” The Q1 results will likely affirm this, with margins expanding as Blackwell production scales.

3. A Forward P/E Discount Amid $2.06 Trillion AI Growth

While NVIDIA’s trailing P/E is 29.2X, its forward P/E (2026) is 22.5X, a 30% discount to peers like Broadcom (AVGO, 35X) and TSMC (TSM, 29.5X). This undervaluation ignores two critical facts:
1. Rubin Architecture’s 2026 Roadmap: NVIDIA’s next-gen AI chips will deliver 10x performance gains over Blackwell, targeting markets like autonomous vehicles and enterprise AI.
2. Structural AI Demand: The AI chip market is set to hit $2.06 trillion by 2032, with NVIDIA’s ecosystem (CUDA software, Omniverse tools) ensuring >50% market share retention.

Why Buy Now? The Catalysts Are Imminent

• Q1 Earnings on May 28: A beat on $43 billion revenue and margin guidance will trigger a short-covering rally.
• Tariff Truce Duration: Even a 90-day pause gives NVIDIA time to secure $20 billion+ in follow-up orders as China’s industrial output (5.9% April growth) stabilizes.
• Rubin’s 2026 Launch: Analysts at JPMorgan project a $500 billion market cap for NVIDIA by 2027, with Rubin enabling $250 billion in new revenue streams.

Risks? Yes, but the Upside Outweighs Them

• Tariff Truce Renewal: If talks fail, tariffs could rebound to 50%+. But NVIDIA’s $16 billion in orders are already booked, and China’s AI race won’t stop for trade wars.
• Competitor Threats: Huawei’s domestic AI chips or U.S. rivals like Intel? NVIDIA’s CUDA ecosystem lock-in and 10-year lead in generative AI make these threats academic.

Final Call: Buy NVIDIA Before the Truce Explores

The stars are aligned: $16 billion in orders, Q1’s 65% growth, and a $2.06 trillion AI market all point to NVIDIA as the best leveraged play in tech. At $435/share, it’s priced for 2025—not the $250 billion opportunity in 2026.

Action Now:
- Buy 100 shares of NVDA at current prices.
- Set a target of $650+/share by year-end 2025.

The AI revolution isn’t slowing—it’s exploding. NVIDIA’s Q1 results will be the spark to light the fuse.

Gary’s Bottom Line: The tariff truce and $16 billion orders are not noise—they’re a signal. NVIDIA’s valuation discount is a mirage; its AI dominance is a certainty. This is your moment.