Nvidia(US:NVDA) Xinda Securities·2025-05-29 12:50Investment Rating - The investment rating for the company is "Positive" [2] Core Insights - The company reported Q1 FY26 revenue of $44.1 billion, which is a 69% year-over-year increase and a 12% quarter-over-quarter increase, exceeding analyst expectations of $43.29 billion [2] - Non-GAAP gross margin was 61%, down 17.9 percentage points year-over-year, but adjusted for H20 impact, the gross margin was 71.3%, slightly above the expected 71% [2] - Net profit reached $19.89 billion, a 31% year-over-year increase, but a 10% decrease quarter-over-quarter [2] - Non-GAAP diluted EPS was $0.81, up 33% year-over-year, and adjusted for H20 impact, EPS was $0.96, higher than the expected $0.93 [2] Performance Summary - The company expects Q2 FY26 revenue to be $45 billion, with a margin of ±2%, and anticipates GAAP and non-GAAP gross margins of 71.8% and 72.0%, respectively [2] - Data center revenue was $39.11 billion, a 73% year-over-year increase and a 10% quarter-over-quarter increase [2][5] - Gaming and AI PC revenue was $3.76 billion, a 42% year-over-year increase and a 48% quarter-over-quarter increase [2][5] - Professional visualization revenue was $509 million, a 19% year-over-year increase, remaining flat quarter-over-quarter [2][5] - Automotive and robotics revenue was $567 million, a 72% year-over-year increase but a 1% decrease quarter-over-quarter [2][5] AI Infrastructure Developments - The company announced a partnership with HUMAIN to establish an AI factory in Saudi Arabia to drive the next wave of AI development [2] - Collaborations with G42, OpenAI, Oracle, SoftBank Group, and Cisco to launch the next-generation AI infrastructure cluster Stargate UAE [2] - Plans to build an AI supercomputer with Foxconn and the Taiwanese government [2] Transition to Blackwell Architecture - The transition from the Hopper architecture to Blackwell is nearly complete, with Blackwell contributing nearly 70% of data center revenue this quarter [2] - The GB200 NVL rack is now fully available to customers, with major data centers deploying nearly 1,000 NVL72 racks weekly [2] - The GB300 has been sampled to major cloud service providers and is expected to begin mass production by the end of Q2 [2] H20 Impact - The U.S. government imposed new export controls on H20 chips on April 9, affecting the company's revenue [2] - The company recognized $4.6 billion in H20 revenue for Q1, but due to export controls, it incurred a $4.5 billion expense and had $2.5 billion worth of H20 products that could not be delivered [2] - The guidance for Q2 FY26 considers the impact of H20 export restrictions, with expected revenue from H20 potentially decreasing by about $8 billion [2]