Nvidia(US:NVDA) Hua Er Jie Jian Wen·2025-05-29 01:48Core Viewpoint - NVIDIA's Q1 earnings report shows strong performance despite export restrictions, with a 69% revenue increase year-over-year, but anticipates an $8 billion revenue loss in Q2 due to H20 export limitations [1][2][11]. Group 1: Financial Performance - Q1 revenue reached $44 billion, a 69% increase year-over-year, exceeding expectations [11]. - AI data center revenue was $39 billion, reflecting a 73% year-over-year growth [11]. - The company expects a significant decline in Chinese data center revenue in Q2 due to new export restrictions [2][21]. Group 2: Export Restrictions Impact - The new export restrictions resulted in an inability to deliver $2.5 billion in H20 revenue during Q1 [12]. - CEO Jensen Huang emphasized the importance of the Chinese market, stating it is crucial for global AI leadership [2][29]. - The loss of access to the projected $50 billion Chinese AI accelerator market poses a significant risk to future business [2][12]. Group 3: Product Development and Capacity - The Blackwell product line is ramping up production at the fastest rate in company history, contributing nearly 70% to data center revenue [3][12]. - Weekly deployment of approximately 1,000 NVL72 racks (72,000 GPUs) by major customers is expected to increase further [3][12]. - The GB300 system is set to begin mass production by the end of the current quarter [3][12]. Group 4: AI Demand and Infrastructure - There is a significant surge in AI inference demand, with Microsoft processing over 100 trillion tokens in Q1, a fivefold increase year-over-year [4][14]. - The company envisions a future where AI becomes a fundamental infrastructure, similar to electricity and the internet [6][45]. - NVIDIA is actively involved in building AI infrastructure globally, with numerous AI factories under construction [6][45]. Group 5: Strategic Partnerships and Market Position - Huang praised DeepSeek and Qwen as leading open-source AI models, highlighting their strategic value in the AI landscape [5][30]. - The company is committed to maintaining its position as the preferred platform for open-source AI development [30][31]. - NVIDIA's partnerships with major companies and governments are aimed at enhancing AI capabilities and infrastructure [32][33].