Nvidia’s latest earnings report reaffirmed its dominant position in the AI hardware market, even as geopolitical headwinds intensify. The company posted $44.1 billion in first-quarter revenue, up 69% from the prior year, and guided to $45 billion for the current quarter.1 The results exceeded expectations despite the impact of expanded US export controls, which are expected to cost Nvidia $8 billion in China-related revenue this quarter alone.2
While the loss of access to the Chinese market would be material for most firms, Nvidia’s continued growth underscores the strength of global demand for its accelerated computing platforms. Data center revenue reached $39.1 billion, reflecting strong uptake of its Blackwell architecture and full-stack systems, which bundle chips, networking hardware, and software to meet the scale and complexity of AI workloads.3
CEO Jensen Huang emphasised that AI infrastructure is becoming a strategic priority for governments and enterprises alike.4 Still, he warned that the widening gulf in US-China tech relations may undermine US leadership in AI. Local players in China, particularly Huawei, are making rapid advances in chip performance and deployment. On the other hand, Nvidia’s tailored H20 chip - created to comply with prior US regulations - has now been rendered unsellable by updated restrictions, with no viable alternative currently planned.5
The company’s performance offers reassurance to investors but also highlights the broader stakes in the AI competition between the US and China. As Washington moves to tighten export policies across the semiconductor supply chain - including EDA software - the risk of technological bifurcation grows.6 Nvidia’s earnings strength illustrates the current demand trajectory, but long-term leadership may depend as much on diplomacy and policy as it does on innovation.
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