The Motley Fool·2025-06-11 09:42Core Viewpoint - Nvidia is experiencing unprecedented growth, making it a compelling investment opportunity despite perceived slowing growth metrics [1][10]. Company Overview - Nvidia is a leader in the GPU market, particularly in the data center industry, with a market share exceeding 90% [5]. - The company's GPUs are utilized in various applications beyond gaming, including AI model training, engineering simulations, and cryptocurrency mining [4][5]. Market Dynamics - Data center capital expenditures are projected to grow from $400 billion in 2024 to $1 trillion by 2028, indicating significant market expansion [6]. - Nvidia's revenue growth appears to be slowing, but this is misleading due to external factors such as U.S. government export restrictions on its H20 chips [7][10]. Financial Performance - In Q1 of fiscal year 2026, Nvidia's revenue increased by 69% year-over-year to $44 billion, with potential additional revenue of $2.5 billion if not for export restrictions [7]. - The company expects to generate $45 billion in revenue for Q2, reflecting a 50% growth rate, but adjusted figures suggest a more accurate year-over-year growth of 79% in Q1 and 77% in Q2 when accounting for lost H20 sales [8][10]. Future Outlook - Wall Street analysts project Nvidia's revenue growth to slow to 53% this year and 26% next year, but the removal of H20 chip sales as a headwind could lead to better-than-expected performance [11]. - The market may not be prepared for Nvidia's potential growth acceleration, making it an attractive buy opportunity [11].