2025-05-28 23:33
publication
2025-05-28 23:33
The government ban on delivery to China hit the quarterly results of Nvidia. Nevertheless, the impact of this already known event turned out to be smaller than previous estimates. Thanks to this, NVIDIA shares in the deposit trade went up.
In the previous accounting quarter (which NVIDIA calls the first quarter of 2026), the chip manufacturer recorded $ 44.1 billion in sales revenues. This result is 12% higher than in the previous quarter and 69% higher than in the same quarter of last year. Therefore, the times when Nvidia reported a doubling of sales from year to year.
Nevertheless, it was a result higher than the expectations of most analysts. The market consensus was $ 43.3 billion. Only profits were only slightly better than analysts' forecasts. The corrected profit per share was 96 cents and was three cents higher than the median forecasts of Wall Street experts.
The US government spoils the business of Nvidia …
The analysis of the results of Nvidia is hindered by the impact of the restrictions that the United States government imposed on the California company in April. It is a ban on selling H20 systems to China. In mid -April, Nvidia informed investors that this decision would cost it $ 5.5 billion. However, it turned out that The actual impact of Trump's administration decision was one billion smaller and amounted to USD $ 4.5 billion.
– On April 9, the United States government informed Nvidia that a license is required for H20's delivery to the Chinese market. As a result of the new requirements, Nvidia suffered $ 4.5 billion in the weight of the first quarter (…) The sale of H20 chips in the first fiscal year of 2026 amounted to USD 4.6 billion (…) Nvidia was not able to provide additional H20 chips for USD 2.5 billion, including quarter – explains the company in the resulting statement.
As a result, the first nvidia financial results in the first quarters of the financial results. The California company recorded USD 18.8 billion net profit, i.e. 15% less than in the previous quarter (but still 26% more than a year ago). The actual (and not “corrected”) profit per share was 76 cents against 89 cents in the previous quarter. The operational margin was also much lower, which shrunk up to 60.5% compared to 73% quarter earlier and 78.4% in the same quarter of last year.
… but the forecasts are still strong
All this did not prevent the company from Santa Clara to present solid forecasts for the current quarter. The management board expects $ 45 billion from sales revenues (+/- 2%). Moreover, this forecast includes a loss from the sale of H20 chip in the amount of approx. USD 8 billion resulting from government bans and export restrictions. The gross margin is to be 72%, +/- 50 pb. Operational expenses are to reach USD 5.7 billion.
– Our breakthrough supercomputer Blackwell NVL72 – “Thinking machine” designed for reasoning – is currently in a full -scale production among the creators of systems and service providers – he said with the typical Emfaza Emfaza Jensen Huang, CEO and the founder of Nvidia.
– The global demand for AI infrastructure from Nvidia is incredibly strong (…) countries around the world realize that AI is an necessary infrastructure – just like electricity and internet – which puts Nvidia in the center of this momentous transformation – Jensen Huang added modestly.
Although the analysts forecasted an average of USD 45.9 billion in revenues for just started a quarter, NVIDII's quotations started up. At 23:20 of the Polish time, the Nvidia share price grew by 4.4%, reaching the level of 140.72 USD. It is the capitalization of the company at the level of nearly $ 3.3 trillion. Even with such a dynamic increase in revenues and profits, this is a monstrous valuation.
Currently, NVIDIA is valued at nearly 46 times the net profit for the previous four quarters. Even if she doubled the results for the next year (and the dynamics of both profits and revenues from several quarters are decreasing), her shares would still be relatively expensive. Maybe for this reason Nvidia's stock market ratings were standing still. From the beginning of 2025, her actions brought almost zero rate of return after they increased by 171% last year and gave almost 240% in 2023. For the previous 5 years, the investment in Nvidia shares brought almost 1500% of the rate of return.
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