Why NVIDIA’s Q1 Surge and Tariff Truce Make This the Perfect Time to Buy Before May 28

The confluence of reduced geopolitical risks, surging AI infrastructure demand, and undervalued fundamentals has created a rare buying opportunity in NVIDIA (NASDAQ: NVDA). With its Q1 fiscal 2025 results delivering record revenue and a U.S.-China tariff truce easing trade tensions, now is the moment to position for long-term gains. Let’s dissect why this semiconductor giant is primed to rebound post-earnings—and why waiting past May 28 could mean missing out on a transformative upside.

The Geopolitical Pivot: Tariff Relief and Strategic Partnerships

The U.S.-China tariff truce announced in early 2025, extending a 90-day pause on new levies, has already delivered tangible benefits. NVIDIA’s stock surged 5% on the news, reaching a market cap of $3 trillion—a level last seen in February 2025. This respite alleviates fears of supply chain disruptions, a critical win for a company whose AI chips power global data centers.

However, the real geopolitical catalyst lies in sovereign AI initiatives. Countries are partnering with NVIDIA to shift traditional data centers to accelerated computing, as highlighted in Q1 earnings. The May 2025 announcement of 18,000 AI chips being shipped to a Saudi Arabian startup—owned by the kingdom’s sovereign wealth fund—signals a strategic pivot to markets beyond China. While export controls on advanced chips like the A100/H100 remain, the tariff truce creates a “ceasefire” environment that lowers immediate risks and accelerates global AI adoption.

AI Infrastructure Demand: The Blackwell Dominance

NVIDIA’s Q1 results underscore its unassailable position in AI’s “golden age.” The Data Center segment, which now accounts for 87% of revenue, hit a record $22.6 billion, a 427% surge year-over-year. This growth isn’t just a blip—it’s driven by Blackwell architecture, NVIDIA’s platform for trillion-parameter-scale generative AI.

The Blackwell-powered DGX SuperPOD systems, now deployed in nine supercomputers worldwide, are the backbone of “AI factories” that enterprises are building to democratize AI. Meanwhile, the NVIDIA NIM software suite and Spectrum-X switches are opening new markets in on-premise data centers and edge computing.

The $28 billion revenue guidance for Q2—a 7.7% sequential increase—reflects sustained demand from industries beyond cloud providers. Healthcare, automotive (e.g., BYD, XPENG), and sovereign AI projects are now multibillion-dollar verticals.

Undervalued Fundamentals: A P/E Discount Waiting to Be Filled

Despite its growth, NVIDIA trades at a P/E ratio of 25.5x (TTM)—a 30% discount to the semiconductor sector average of 36.3x. This valuation gap is irrational given its AI dominance and the $115.2 billion full-year Data Center revenue projected for FY2025.

The stock’s recent dip—down 8% from its March 2025 peak—has created a rare entry point. Factor in the 10-for-1 stock split (effective June 2024) and a 150% dividend hike ($0.10 pre-split), and investors gain access to a more liquid, growth-oriented equity.

Near-Term Catalysts: Why Act Before May 28?

The urgency stems from two critical events:
1. The Saudi Chip Deal’s Compliance Test: By May 28, NVIDIA’s ability to navigate sanctions while expanding in Saudi Arabia—a geopolitical ally—will signal whether its global strategy is sustainable. Positive news here could trigger a rerating.
2. Q2 Earnings Momentum: With AI adoption accelerating and the tariff truce still in effect, Q2 results (to be reported in August) are likely to exceed guidance. Buying now positions investors to capture this upside.

Long-Term Dominance: The AI Infrastructure Monopoly

NVIDIA’s “AI as a commodity” vision is materializing. Its software-hardware ecosystem—Blackwell, NIM, and cuLitho (for semiconductor manufacturing)—creates a moat against competitors like AMD and Intel. By 2030, the generative AI market is projected to hit $1.7 trillion, and NVIDIA is the gatekeeper to it.

Final Analysis: Risk vs. Reward

Yes, risks remain: U.S. export controls, China’s retaliatory tariffs, and interest rate pressures. But the confluence of reduced geopolitical friction, AI’s exponential growth, and NVIDIA’s valuation discount creates a risk/reward asymmetry too compelling to ignore.

Act now. By May 28, the window to buy NVIDIA at a 30% P/E discount could close. This isn’t just a stock—it’s the golden ticket to the AI revolution.

Disclosure: This analysis is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making investment decisions.