Financial Performance - Nvidia reported Q1 FY2026 revenue of $44.062 billion, a 69% year-over-year increase [1] - Net profit reached $18.775 billion, up 26% year-over-year [1] - Earnings per share (EPS) was $0.76, reflecting a 27% increase year-over-year [1] - Data center business, driven by AI chips and related products, saw a 73% revenue increase, accounting for 88% of total revenue [1] Impact of Export Controls - U.S. export controls on chips significantly impacted Nvidia's performance, leading to a $4.5 billion inventory write-down and an estimated loss of $2.5 billion in potential sales [1] - An additional loss of approximately $8 billion is expected in Q2 due to these restrictions [1] - The Chinese market, valued at around $50 billion, is now largely inaccessible to U.S. companies due to the H20 chip export ban [3][12] AI Market Dynamics - China is a major player in the global AI market, with half of the world's AI researchers located there [3] - The inability to deploy Hopper architecture products in China limits Nvidia's market share and growth potential in this region [3][12] - The competition in AI is not just about chips but also about who leads the entire technology stack [4] Domestic Manufacturing Initiatives - Nvidia supports the vision of bringing advanced manufacturing back to the U.S., with significant investments in local chip production facilities [7] - Partnerships with companies like TSMC and Foxconn are underway to establish AI supercomputer manufacturing plants in the U.S. [7] AI Infrastructure and Development - The company emphasizes the importance of AI as a foundational infrastructure that will transform various industries [12][14] - New enterprise AI products are being launched to support local developers and businesses, indicating a shift towards internal AI deployment [14] - The future of AI infrastructure is expected to include AI factories within manufacturing plants, enhancing operational efficiency [14]