Nvidia Concludes Big Tech Earnings Season with Record Q1 FY2026 Results Amid Export Challenges
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Nvidia’s Q1 FY2026 Earnings Surpass Expectations, Highlighting AI Demand
Record-Breaking Financial Performance
Nvidia Corporation (NASDAQ: NVDA) reported impressive first-quarter fiscal 2026 earnings, with revenue reaching $44.1 billion—a 69% increase year-over-year—surpassing analysts’ expectations of $43.3 billion. The company’s data center division contributed significantly, generating $39.1 billion, marking a 73% year-over-year growth.
Nvidia shares have rallied back from an April 2025 low, reflecting strong investor confidence and market momentum. (Source: Bloomberg)
Navigating Export Restrictions
Despite a $4.5 billion charge due to unsold H20 chip inventory and an inability to ship $2.5 billion worth of H20 chips because of U.S. export restrictions to China, Nvidia’s strong demand for AI inference and its new Blackwell chips drove investor optimism, leading to a 4% rise in after-hours stock trading.
CEO Jensen Huang Addresses Export Challenges and Global Expansion
During the earnings call, CEO Jensen Huang criticized the U.S. export policies, stating they impede America’s AI leadership and inadvertently stimulate foreign competition. He emphasized the strategic importance of China as a significant AI market and highlighted Nvidia’s plans to expand globally, including substantial deals in Saudi Arabia and Taiwan, and the establishment of a quantum computing lab in Boston.
Market Reaction and Future Outlook
Nvidia’s strong performance has been a key driver in the rebound of technology stocks. Analysts remain optimistic about Nvidia’s trajectory, citing robust data center performance and global demand for its AI chips despite geopolitical challenges.
