Nvidia(NVDA) The Motley Fool·2025-03-29 08:08Core Viewpoint - Nvidia continues to experience strong demand and revenue growth despite facing external pressures, particularly from U.S. government regulations and challenges in the Chinese market [2][3][12] Group 1: Revenue Performance - In fiscal year 2025, Nvidia's total revenue surged 114% to a record 35 billion [9] - Nvidia's stock has gained 800% over the past two years, reflecting its overall growth despite challenges in specific markets [10] Group 2: Challenges in China - Nvidia's data center revenue from China declined from 19% in fiscal 2023 to 14% in fiscal 2024 due to U.S. export controls [3] - The U.S. government has blacklisted several Chinese companies, including subsidiaries of Nvidia's customer Inspur Group, impacting Nvidia's ability to export technology [5] - New energy-efficiency regulations in China have made it difficult for Nvidia to advance in the market, as its H20 chips do not meet the requirements [6] Group 3: Competitive Landscape - Huawei is emerging as a significant competitor in the AI space, with Nvidia's CEO acknowledging the company's strengthening presence [7] - Despite challenges in China, Nvidia's U.S. revenue surpassed 26 billion the previous year, indicating strong growth in its primary market [12] Group 4: Historical Resilience - Nvidia successfully navigated previous export control challenges by designing the H20 chip specifically for China, which, although not fully mitigating revenue declines, did not hinder overall growth [8][10] - The company's historical ability to adapt to regulatory challenges suggests it may find solutions to current issues in China over time [13]