Can NVIDIA shares hit new heights? CEO Jensen Huang has just provided clear and convincing evidence that the answer is yes.

Can NVIDIA shares hit new heights? CEO Jensen Huang has just provided clear and convincing evidence that the answer is yes.

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  • Investors climb a wall of concern about NVIDIA’s shares, as export and tariff threat restrictions have weighted the shares.

  • The company gave results that exceeded expectations, despite the significant write -off.

  • The future looks bright for NVIDIA, but the profits will not be in a straight line.

  • 10 shares we like better than NVIDIA ›

To say that investors were on the edge of their seats Nvidias (Nasdaq: NVDA) The long -awaited financial statement can be an underestimation. As a child of the plaque for the revolution of artificial intelligence (AI), the company has become a benchmark for the technological industry as a whole and the criterion by which the progress in AI is measured.

While the chipmaker gave better than the expected results in both the top and the bottom line, there were several drawbacks to what would be an otherwise flawless report.

Let’s look at what the results reveal and whether they give us a look at the future of AI.

NVIDIA JENSEN HUANG CEO on the GTC 2025 stage. Image source: NVIDIA.

Investors had high hopes for the NVIDIA fiscal in 2026 (ended April 27) and Ai Chipmaker deliver. The company generates a record revenue of $ 44.1 billion, which is 69% compared to the year and 12% quarter over the quarter. This led to a corrected profit per share (EPS) of $ 0.81, which increased by 33%.

For context, analysts’ consensus estimates call for $ 43.25 billion and EPS for $ 0.75, so NVIDIA was sailing past expectations with a Wiggle room.

Feeding the scourges was a record implementation of the data center segment, which continues to lead to growth. The segment – which includes processors used for data centers, AI and cloud calculations – generates revenue that increased by 73% compared to a year to $ 39.1 billion, led by the continued AI demand.

One note was the tightening of the Trump administration administration. The NVIDIA H20 processor was originally designed to meet the already strict requirements for AI chips intended for China. However, the demand has evaporated thanks to the new, more rigorous licensing requirements, which led to a fee of $ 4.5 billion over the Q1 -although it was more than a $ 5.5 billion estimated that the company provided last month.

The impact of the course pierces its path to the financial statements. For example, if it wasn’t for write -off, the NVIDIA adjusted EPS would have been $ 0.96, which would lead to a hit of about $ 0.15 per share.

However, as the revenues jumped 69%, operating costs rose only 44%, sending more to the bottom line and helping to dull the impact of China’s lost sales. Nvidia’s cash reserves have grown in the last year, with cash and traded securities being $ 53.7 billion, an increase of 71%. The free $ 26.1 billion cash flow increased 75%.

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