Nvidia(NVDA) Tianfeng Securities·2025-06-10 10:23Investment Rating - The investment rating for NVIDIA is "Buy" with a maintained rating for the next six months [7]. Core Insights - NVIDIA's overall performance exceeded expectations with total revenue of $44.1 billion for FY26Q1, representing a 69.0% year-over-year increase, surpassing market expectations of $43.3 billion [1]. - The non-GAAP gross margin was reported at 61%, and if excluding a $4.5 billion impairment charge, it would have been 71.3%, slightly above Bloomberg's consensus of 70.96% [1]. - Net profit for the quarter was $23.6 billion, exceeding Bloomberg's consensus of $23.1 billion [1]. - The strong demand for AI continues to drive high revenue growth, with expectations for gross margins to recover to 75% by the end of the year [3]. Business Segment Summary - Data Center revenue reached $39.1 billion, slightly below consensus expectations of $39.2 billion; Compute business generated $34.155 billion, a 76.1% year-over-year increase, but below the expected $35.469 billion [2]. - Networking revenue was $4.96 billion, significantly exceeding expectations of $3.45 billion, with NVLink product shipments exceeding $1 billion in Q1 [2]. - Gaming revenue was $3.763 billion, a 42.2% year-over-year increase, far surpassing the expected $2.845 billion [2]. - Automotive revenue was $567 million, a 72.3% increase, meeting expectations, while OEM & Other revenue was $111 million, below the expected $118 million [2]. - The company anticipates total revenue of $45 billion (±2%) for Q2, with moderate sequential growth across all business segments [3][5].