Key Takeaways from Nvidia’s Earnings
Record Revenue, Regulatory Reality, and the Race to Reinvent AI Hardware
NVIDIA has done it again—smashing revenue expectations and solidifying its position as the world’s most valuable company. But behind the soaring numbers lies a more nuanced story: geopolitical pressure, next-gen architecture, and the delicate art of staying ahead in a regulated AI race.
💰 Q1 FY2026 Results: Revenue in Turbo Mode
NVIDIA reported $44.1 billion in revenue for the first quarter of fiscal 2026, a 12% increase from Q4 and a stunning 69% jump YoY. Most of the gains came from its Data Centre division, which pulled in $39.1 billion, up 73% YoY, fuelled by surging demand for generative AI infrastructure.
CEO Jensen Huang highlighted the rise of inference workloads, calling it a “dramatic shift” in demand—exactly what the newly launched Blackwell architecture was built for.
The AI arms race continues, and cloud hyperscalers (we’ve highlighted in past editions) including Microsoft Azure, Google Cloud, Oracle, and AWS still account for around half of NVIDIA’s data center revenue. That customer base is showing no signs of slowing.
🌏 China Headwinds: $2.5 Billion in Lost Sales
It’s not all smooth sailing. NVIDIA revealed that U.S. export controls—especially on its H20 chip—resulted in an estimated $2.5 billion drop in quarterly revenue from China.
Once a major growth driver, China has become a geopolitical minefield for NVIDIA. But the company is adapting fast. In early June, reports surfaced that NVIDIA is working on a new export-compliant AI chip dubbed “B30”, tailored specifically for the Chinese market.
The B30 is expected to:
Leverage the latest Blackwell architecture
Support multi-GPU scaling, likely via SuperNICs or a revived NVLink
Use GDDR7 memory instead of HBM
Skip TSMC’s advanced packaging to meet compliance thresholds
This chip could bring in up to $3 billion in revenue in the second half of NVIDIA’s fiscal year, but won’t fully offset the H20 losses. Whether B30 can reclaim momentum remains uncertain. What’s certain? NVIDIA won’t give up the world’s largest AI market without a fight.
🔀 A Tale of Two Tech Worlds
NVIDIA’s pivot to China-specific chips marks a broader shift: the emerging split in global AI infrastructure.
As export controls redraw technology borders, we’re seeing the rise of two parallel ecosystems—one for China, one for the rest of the world. China is doubling down on domestic semiconductor innovation, rapidly closing the gap with global leaders.
For global giants like NVIDIA, this means more than compliance. It’s about developing and supporting dual product lines, navigating diverging standards, and choosing strategic priorities. The long-term implications? A more fragmented tech world—with ripple effects across innovation, supply chains, and global leadership.
📈 Stock Performance: Closing In on All-Time Highs
Investors liked what they saw. NVIDIA’s shares surged nearly 5% in after-hours trading, just 8% below its all-time high reached earlier this year. The stock is on track to close the year in positive territory, continuing its meteoric rise.
With a market cap now eclipsing both Microsoft and Apple, NVIDIA has become the most valuable company in the world—a crown long held by software and device giants.
Stay tuned for our Friday Premium Edition, where we’ll unpack which next-gen AI hardware players might ride its wake.
In Case You Missed It 📬
🇬🇧 Britain’s Big Defence Plan Lacks Big Defence Money
The UK’s new 140-page Strategic Defence Review promises to reshape the military for a new era of conflict—with submarines, drones, and cyber commands leading the charge. But while the plan calls for “warfighting readiness” and a 10x increase in army lethality, many key capabilities won’t arrive until the 2030s. Meanwhile, defence spending remains capped at 2.5% of GDP until 2027—well below what’s needed to fund AUKUS subs, GCAP fighters, and nuclear upgrades. Critics warn that without a faster fiscal commitment, Britain’s ambition risks being outpaced by reality.
We continue to closely monitor developments in the UK and European defence industry, along with related investment opportunities.
Stay tuned for our Friday premium edition where we’ll break down portfolio moves, sector rotations, and our next trade idea — all for just $6/month (or £5/month).
Join 36,000+ savvy investors who believe: “Your money deserves better.”
Keep in touch with Genuine Impact!
Instagram | X/Twitter | LinkedIn
Created by Arya