NVIDIA (NVDA) reported another exceptional performance in Q1 2026 on 28 May, demonstrating the company's continued dominance in AI computing. The chipmaker posted record revenue growth of 69% year-over-year, reaching $44.06 billion, as demand for its AI infrastructure solutions remains high across global data centers.
These impressive results came against a backdrop of significant challenges. In April 2025, the US government implemented stricter export controls that severely impacted NVIDIA's ability to sell its advanced H20 chips to Chinese customers, historically one of the company's most important markets. These restrictions forced NVIDIA to take substantial financial charges and adjust its near-term outlook. However, the company's fundamental growth story remains intact thanks to its technological leadership and diversified customer base.
Key Financial Metrics
● Revenue: $44.06 billion, up 69% year-over-year (YoY)
● Adjusted Earnings Per Share (EPS): $0.81, representing a 33% YoY increase
● Data Center Revenue: $39.1 billion, a 73% YoY increase
● Net Income: $18.2 billion, a 22% increase despite a $4.5 billion H20 chip charge
● Cash Reserves: Record $53.7 billion
Analysis & Outlook
While the new US export rules introduced challenges, including a $4.5 billion inventory charge, $2.5 billion in lost Q1 shipments, and an anticipated $8 billion Q2 revenue impact, NVIDIA is proactively addressing these challenges through strategic growth initiatives. The company is aggressively ramping production of its next-generation Blackwell chips, establishing a new quantum computing lab, and strengthening global AI infrastructure partnerships to diversify its revenue streams. Investors have responded positively to this strategy. The combination of a strong financial performance, continued innovation, and strategic positioning showcases NVIDIA's capacity to capitalise on the AI revolution while managing challenging market dynamics and reinforcing its long-term growth potential.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
