港股恒生指数涨0.04%，涨11点，报26840点；恒生科技指数涨0.63%。港股早盘成交2074亿港元。 上海电气（601727）(02727)涨15.72%，公司A股涨停，可控核聚变赛道近期利好频出。 华虹半导体(01347)涨6.75%再创新高，供应链本土化继续加速，本土代工需求有望迅速扩大。 江西铜业（600362）股份(00358)再涨11%，公司为国内铜冶炼龙头，第一量子旗下铜矿有望复产。 洛阳钼业（603993）(03993)再涨8%，刚果严控钴出口，钴价此前两日飙升逾11%。 恒生银行(00011)涨26%，汇丰建议将恒生银行私有化。 部分光伏股早盘走高。9月光伏产业链价格持续走高，上游价格涨幅高于下游。新特能源(01799)涨 4.52%；福莱特（601865）玻璃(06865)涨7.67%；协鑫科技(03800)涨3.73%。 高铁基建股涨幅居前。铁路投资进度再破纪录，"十五五"铁路发展规划编制工作已启动。中国中铁 （601390）(00390)涨9%；中国中冶（601618）(01618)涨6%；中国中车（601766）(01766)涨4.17%。 中兴通讯(00763)AH股齐涨，Co ...

江西铜业股份(00358)再涨11%，公司为国内铜冶炼龙头，第一量子旗下铜矿有望复产。 洛阳钼业(03993)再涨8%，刚果严控钴出口，钴价此前两日飙升逾11%。 智通财经APP获悉，港股恒生指数涨0.04%，涨11点，报26840点；恒生科技指数涨0.63%。港股早盘成 交2074亿港元。 上海电气(02727)涨15.72%，公司A股涨停，可控核聚变赛道近期利好频出。 华虹半导体(01347)涨6.75%再创新高，供应链本土化继续加速，本土代工需求有望迅速扩大。 高铁基建股涨幅居前。铁路投资进度再破纪录，"十五五"铁路发展规划编制工作已启动。中国中铁 (00390)涨9%；中国中冶(01618)涨6%；中国中车(01766)涨4.17%。 中兴通讯(00763)AH股齐涨，Co-Sight超级智能体海外首发亮相，公司企业AI市场增长潜力积极。中兴 通讯H股涨10.73%。 蜜雪集团(02097)逆市涨8.96%，跨界投资鲜啤福鹿家，前瞻性布局"茶饮+咖啡+鲜啤"版图。 思摩尔国际(06969)再跌超9%，较年内高点已跌超30%，瑞银称其盈测较市场共识更低。 恒生银行(00011)涨26%，汇丰建议将恒生银 ...

Summary of NVIDIA's Q1 Fiscal 2026 Conference Call Company Overview - **Company**: NVIDIA - **Fiscal Quarter**: Q1 of Fiscal 2026 - **Date of Call**: May 28, 2025 Key Industry Insights - **Data Center Revenue**: Reached $39 billion, a 73% year-on-year growth driven by AI workloads transitioning to inference and AI factory build-outs [2][3] - **Export Controls Impact**: New U.S. export controls on the H20 GPU, specifically designed for the China market, resulted in a $4.5 billion inventory write-down and a loss of $2.5 billion in potential revenue for Q1 [2][13] - **China Market**: The loss of access to the China AI accelerator market, projected to grow to nearly $50 billion, poses a significant risk to NVIDIA's business [2][19] Financial Performance - **Revenue Breakdown**: - Q1 recognized $4.6 billion in H20 revenue before export controls [2] - Anticipated total revenue for Q2 is $45 billion, with a significant decline in China data center revenue expected [11][12] - **Gross Margins**: GAAP gross margin at 60.5%, non-GAAP at 61%. Excluding the $4.5 billion charge, non-GAAP gross margins would have been 71.3% [11] - **Shareholder Returns**: NVIDIA returned a record $14.3 billion to shareholders through share repurchases and dividends [11] Product and Technology Developments - **Blackwell Architecture**: Contributed nearly 70% of data center compute revenue, with significant improvements in manufacturing yields and ramp-up rates [3][4] - **Inference Demand**: Strong demand for inference, with Microsoft processing over 100 trillion tokens in Q1, a five-fold increase year-on-year [4] - **AI Factory Deployments**: Nearly 100 NVIDIA-powered AI factories in operation, doubling year-on-year, with significant growth in GPU usage per factory [5] Strategic Partnerships and Market Position - **Collaborations**: Partnerships with major companies like Microsoft, OpenAI, and Yum Brands to enhance AI capabilities across various sectors [6][10] - **Networking Solutions**: Revenue from networking grew 64% quarter-over-quarter to $5 billion, with significant adoption of Spectrum X among major cloud service providers [7][28] Future Outlook - **Guidance for Q2**: Expected revenue decline in China data center revenue, with a loss of approximately $8 billion in H20 revenue anticipated [11][18] - **Long-term Growth**: NVIDIA's roadmap extends through 2028, with a focus on AI infrastructure, enterprise AI, and industrial AI [4][30] - **AI as Infrastructure**: The company emphasizes the importance of AI as essential infrastructure, similar to electricity and the internet, with a significant build-out expected globally [22][25] Additional Insights - **Export Control Concerns**: The U.S. export restrictions are seen as detrimental to American competitiveness in the global AI market, potentially benefiting foreign competitors [13] - **Emerging AI Technologies**: The introduction of reasoning AI models is driving a surge in inference demand, with significant implications for compute requirements [14][19] - **Investment in Manufacturing**: NVIDIA is investing in onshore manufacturing capabilities to strengthen its supply chain and support AI infrastructure development [15][26] This summary encapsulates the critical points discussed during NVIDIA's Q1 Fiscal 2026 conference call, highlighting the company's performance, strategic direction, and the broader implications for the AI industry.

Core Insights - Glean, an AI startup, has raised $150 million in funding, achieving a valuation of $7.2 billion, significantly up from $4.6 billion in September 2022 [2][3] - The funding round was led by Wellington Management, with participation from existing investors like Sequoia Capital, indicating strong confidence in Glean's growth trajectory [3] - Glean aims to use the new funds to accelerate product development, expand its partner ecosystem, and pursue international growth [3] Company Overview - Founded in 2019, Glean started with enterprise search and has since developed products like Glean Assistant and Glean Agents, leveraging RAG technology for AI-driven enterprise search [4][6] - Glean Search allows employees to find data across internal documents and the web, while Glean Assistant automates daily tasks and provides data analysis through natural language queries [6] - Glean Agents enables the creation of AI agents for tasks like debugging software code, supporting over 100 million agents annually [6] Market Position and Growth - Glean's business model reflects a broader shift in the enterprise AI sector, moving from pilot projects to widespread deployment of autonomous agents [7] - The company has seen rapid revenue growth, with annual recurring revenue (ARR) increasing from $55 million to $100 million [7] - Glean's client base includes Fortune 500 companies like Dell, showcasing its strong market presence [7] AI Implementation in Enterprises - Arvind Jain, Glean's CEO, emphasizes the importance of a robust data infrastructure for effective AI applications, including deep integration with enterprise systems and a solid security framework [8][9] - The challenges of enterprise AI deployment stem from the private and context-dependent nature of enterprise data, requiring an understanding of organizational structure and user roles [9] - Jain suggests that AI entrepreneurs should focus on solving specific business problems rather than starting with AI technology itself, building trust with enterprises through clear value propositions [10]

Investment Rating - The report assigns a strong buy rating for NVIDIA, expecting it to outperform the benchmark index by over 20% in the next six months [36]. Core Insights - NVIDIA reported FY26Q1 revenue of $44.1 billion, a year-over-year increase of 69% and a quarter-over-quarter increase of 12%, significantly exceeding market expectations of $43.3 billion and company guidance of $43 billion ± 2% [3][7]. - The data center business continues to drive growth, with Q1 data center revenue reaching $39.1 billion, up 73% year-over-year and 10% quarter-over-quarter, with Blackwell contributing 70% of data center computing revenue [3][4]. - The company anticipates FY26Q2 revenue to be around $45 billion, considering an estimated loss of $8 billion in H20 revenue due to recent export control restrictions [5][8]. Revenue Breakdown - **Data Center**: FY26Q1 revenue reached a record high of $39.1 billion, with computing revenue at $34.2 billion (up 76% YoY) and networking revenue at $4.957 billion (up 56% YoY) [4]. - **Gaming**: FY26Q1 revenue was $3.763 billion, reflecting a 42% YoY increase and a 48% QoQ increase, driven by strong adoption of Blackwell architecture GPUs [4]. - **Professional Visualization**: FY26Q1 revenue was $509 million, showing a 19% YoY increase, with expectations for recovery in Q2 [4]. - **Automotive and Robotics**: FY26Q1 revenue was $567 million, up 72% YoY, driven by strong demand for autonomous driving and electric vehicles [4]. Profitability Metrics - The GAAP and non-GAAP gross margins for the quarter were 60.5% and 61.0%, respectively. Excluding a $4.5 billion expense, the non-GAAP gross margin would have reached 71.3% [3][7]. - GAAP and non-GAAP diluted earnings per share were $0.76 and $0.81, respectively. Adjusting for the $4.5 billion expense, the non-GAAP diluted EPS would have been $0.96 [3][7]. Future Outlook - The company aims to improve gross margins to the mid-70% range in the second half of the year, with FY26Q2 gross margin guidance set at 71.8% and 72.0% for GAAP and non-GAAP, respectively [5][8]. - NVIDIA is experiencing a significant increase in demand for AI applications, with expectations for AI spending to reach nearly $1 trillion in the coming years [12][17].

Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [37]. Core Insights - NVIDIA reported FY26Q1 revenue of $44.1 billion, a year-over-year increase of 69% and a quarter-over-quarter increase of 12%, significantly exceeding market expectations of $43.3 billion and company guidance of $43.0±2 billion. This growth was primarily driven by the data center business, which generated $39.1 billion in revenue, up 73% year-over-year and 10% quarter-over-quarter [3][7]. - The Blackwell architecture contributed approximately 70% of the data center computing revenue, marking the fastest ramp-up in GPU production in the company's history [4]. - The company expects FY26Q2 revenue to be $45.0 billion, with a potential loss of $8.0 billion in revenue due to recent export control restrictions affecting the H20 product line [5][8]. Summary by Sections 1. Performance Overview - FY26Q1 revenue reached $44.1 billion, with data center revenue at $39.1 billion, reflecting a 73% year-over-year growth. The GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. Excluding a $4.5 billion expense, the non-GAAP gross margin would have been 71.3% [3][7]. - The diluted earnings per share were $0.76 (GAAP) and $0.81 (non-GAAP), with a potential adjusted non-GAAP EPS of $0.96 when excluding the aforementioned expense [3][7]. 2. Business Segment Performance - **Data Center**: Revenue reached a record high of $39.1 billion, with computing revenue at $34.2 billion (up 76% YoY) and networking revenue at $4.957 billion (up 56% YoY) [4]. - **Gaming**: Revenue was $3.763 billion, showing a 42% year-over-year increase, driven by strong adoption of Blackwell architecture GPUs [4]. - **Professional Visualization**: Revenue was $509 million, with a 19% year-over-year increase, although it remained flat quarter-over-quarter due to tariff-related uncertainties [4]. - **Automotive and Robotics**: Revenue was $567 million, reflecting a 72% year-over-year increase, driven by strong demand for autonomous driving and electric vehicles [4]. 3. Future Guidance - The company anticipates FY26Q2 revenue of $45.0 billion, accounting for an estimated $8.0 billion loss in H20 revenue due to export restrictions. Expected gross margins are projected at 71.8% (GAAP) and 72.0% (non-GAAP) [5][8].

Core Viewpoint - NVIDIA's CEO Jensen Huang expressed concern over the H20 export restrictions impacting the company's access to the Chinese AI market, which is valued at $50 billion, while highlighting the robust demand for AI processing capabilities driven by the Blackwell chip production [1][8][45]. Group 1: Financial Performance and Market Impact - NVIDIA's Q1 revenue reached $44 billion, a 69% year-over-year increase, despite the challenges posed by export restrictions [25]. - The company anticipates a loss of $8 billion in H20 revenue due to new export limitations, significantly affecting future business prospects in the Chinese market [8][43]. - The data center revenue grew by 73% year-over-year, driven by the rapid ramp-up of the Blackwell product line [5][27]. Group 2: AI Demand and Technological Advancements - There is an explosive growth in AI inference demand, with token generation increasing by 500% year-over-year, particularly in complex AI workloads [12][29]. - The Blackwell architecture is designed to support this demand, offering a throughput that is 40 times higher than the previous Hopper architecture [12][10]. - The average deployment rate for major hyperscale customers is nearly 1,000 NVL72 racks per week, indicating strong market adoption [10][28]. Group 3: Strategic Insights on AI Market - Huang emphasized that winning the Chinese AI market is crucial for global leadership, as it houses half of the world's AI researchers [3][45]. - The company is exploring options to create attractive solutions for the Chinese market in light of the export restrictions [8][46]. - The rise of open-source AI models like DeepSeek and Qwen is seen as a strategic advantage for the U.S. in maintaining its leadership in AI technology [13][46]. Group 4: Future Outlook and Growth Engines - NVIDIA is optimistic about future growth, citing multiple key growth engines including surging inference demand, sovereign AI initiatives, and enterprise AI [19][49]. - The company plans to achieve $45 billion in revenue for Q2, with expected gross margins of 71.8% [20][43]. - The establishment of AI factories globally is seen as a foundational step in building the necessary infrastructure for AI deployment across industries [15][62].

Core Viewpoint - NVIDIA's FY26Q1 revenue reached $44.062 billion, representing a year-over-year increase of 69.18% and a quarter-over-quarter increase of 12.03%, exceeding guidance expectations [1][10] Group 1: Financial Performance - FY26Q1 revenue of $44.062 billion surpassed guidance of $43 billion, with a non-GAAP gross margin of 61% and a margin of 71.3% after excluding H20-related expenses [1][10] - The company incurred $4.5 billion in expenses due to H20 product inventory surplus and procurement obligations, which was lower than expected due to the reuse of some materials [1][11] - FY26Q2 revenue guidance is set at $45 billion, reflecting an expected loss of approximately $8 billion in H20 revenue [4][24] Group 2: Business Segments - Data Center revenue reached $39 billion, up 73% year-over-year and 10% quarter-over-quarter, driven by demand for AI applications [3][10] - Gaming and AI PC revenue hit a record $3.8 billion, up 42% year-over-year and 48% quarter-over-quarter, primarily due to Blackwell architecture products [2][18] - Professional Visualization revenue was $509 million, up 19% year-over-year, while Automotive revenue was $567 million, up 72% year-over-year [3][20] Group 3: Market Dynamics - The Chinese AI chip market is estimated at $50 billion, but the H20 export ban has significantly impacted NVIDIA's operations in China [5][25] - The introduction of the GB200 NVL architecture is expected to support large-scale workloads and reduce inference costs [5][12] - The company is expanding its manufacturing capabilities in the U.S., with TSMC building six fabs in Arizona and partnerships with Foxconn for AI supercomputer production [5][28] Group 4: Future Outlook - The company anticipates a recovery in gross margin to 75% by the end of the year, driven by improved profitability from Blackwell products [4][24] - The AI industry is expected to experience exponential growth, with significant demand for inference AI driving the need for increased computational power [40][36] - The company is well-positioned to capitalize on the growing AI infrastructure investments globally, with a focus on local deployments and integration with existing IT systems [32][40]

Core 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].

Financial Data and Key Metrics Changes - NVIDIA reported revenue of $44 billion, a 69% year-over-year increase, exceeding expectations despite a challenging operating environment [6] - Data center revenue reached $39 billion, growing 73% year-on-year [6] - GAAP gross margins were 60.561%, while non-GAAP gross margins would have been 71.3% excluding a $4.5 billion charge related to inventory write-downs [31][33] Business Line Data and Key Metrics Changes - Data center revenue was significantly impacted by new export controls, with $4.6 billion recognized prior to the controls and a $4.5 billion charge for inventory write-downs [7][31] - Gaming revenue reached a record $3.8 billion, increasing 48% sequentially and 42% year-on-year, driven by strong adoption of Blackwell architecture [22][23] - Pro Visualization revenue was flat sequentially at $5.9 billion but up 19% year-on-year [26] - Automotive revenue was $567 million, down 1% sequentially but up 72% year-on-year, driven by self-driving technology and demand for new energy vehicles [28] Market Data and Key Metrics Changes - China data center revenue was slightly below expectations due to export licensing controls, with a meaningful decrease anticipated in Q2 [21][22] - Singapore represented nearly 20% of Q1 build revenue, primarily for US-based customers [22] Company Strategy and Development Direction - NVIDIA is focusing on AI infrastructure, with plans to build AI factories globally, emphasizing the importance of AI in various industries [14][62] - The company is committed to a multi-year product roadmap extending through 2028, with a focus on enhancing AI capabilities and infrastructure [11][12] - NVIDIA is exploring limited options to supply data center products compliant with new export control rules, acknowledging the competitive landscape in AI [9][38] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about losing access to the China AI accelerator market, which could have a material adverse impact on business [9] - The company anticipates continued ramp-up of Blackwell products, partially offset by declines in China revenue, with total revenue expected to be around $45 billion in Q2 [32][33] - Management highlighted the exponential growth in reasoning AI and its implications for future demand and infrastructure needs [62][84] Other Important Information - NVIDIA returned a record $14.3 billion to shareholders through share repurchases and dividends [32] - The company is actively investing in onshore manufacturing and partnerships to strengthen its supply chain [45][46] Q&A Session Summary Question: How much of the inference demand is NVIDIA able to serve? - Jensen Huang stated that NVIDIA aims to serve all inference demand and is on track to do so, highlighting the capabilities of the Grace Blackwell NVLink 72 for reasoning AI [53][54] Question: What is the impact of China on revenue guidance? - Colette Kress clarified that the company recognized $4.6 billion in H20 revenue in Q1 and expects a significant decline in China data center revenue in Q2 due to export controls [60][61] Question: What are the drivers of growth for the AI infrastructure? - Jensen Huang identified four positive surprises driving growth: increased demand for reasoning AI, the rescinding of the AI diffusion rule, the rise of enterprise AI, and the emergence of industrial AI [82][84] Question: Are there more large GPU cluster investments expected? - Jensen Huang confirmed that there are more orders than previously discussed and that many AI factories are being planned globally, indicating a strong future demand for AI infrastructure [70][72] Question: What is the outlook for the networking business? - Jensen Huang highlighted the success of Spectrum X and its adoption among major CSPs, emphasizing the importance of low latency and high performance in AI networking solutions [100]