Nvidia Corp (NASDAQ:NVDA, ETR:NVD) reported a blockbuster start to the 2026 financial year, posting a record US$44.1 billion in revenue for the first quarter – up 69% year-on-year – despite taking a multibillion-dollar hit from US-China trade tensions.
The results blew past analyst expectations, showcasing how strong demand for the chipmaker’s artificial intelligence (AI) infrastructure is more than compensating for lost sales to China. The company is forecasting US$45 billion in second-quarter sales, reinforcing that global appetite for accelerated computing is still growing.
“In a quarter of uncertainty, Nvidia has reminded markets why it is the cornerstone of the AI revolution,” said eToro market analyst Josh Gilbert.
Blackwell boosts confidence
At the centre of this momentum is Nvidia’s next-generation Blackwell architecture, a high-performance AI platform designed for large-scale reasoning, generative AI and data processing. The flagship Blackwell NVL72 supercomputer, which is built for “agentic” AI and delivers significant performance improvement over its predecessor, is in now in full-scale production, CEO and founder Jensen Huang noted.
“Global demand for Nvidia’s AI infrastructure is incredibly strong,” Huang said, adding that demand for AI computing is expected to accelerate as AI agents become mainstream.
“Countries around the world are recognising AI as essential infrastructure – just like electricity and the internet – and Nvidia stands at the centre of this profound transformation.”
According to Gilber, investors had been looking for signs Nvidia could alleviate short-term concerns.
“What they got was a clear message that demand remains robust, Blackwell is ramping up fast and these results will restore investor confidence,” he said.
China restrictions take a toll – but not the story
The standout caveat was a US$4.5 billion charge stemming from new US export controls imposed on Nvidia’s H20 chips to China. The company was unable to ship another US$2.5 billion worth of those chips, and it forecasts an US$8 billion second-quarter revenue impact from continued restrictions.
While concerning, analysts and investors appear willing to look through the noise. “Despite the China drag, Nvidia’s top-line strength speaks for itself,” said Gilbert. “US$44 billion in Q1 sales and another US$45 billion expected next quarter tells us they’re making up for the China loss elsewhere.”
Nvidia’s AI-heavy data centre segment was once again the crown jewel, generating US$39.1 billion in revenue – up 73% year-on-year. Growth came from across the board: large cloud providers, sovereign AI programs and enterprise deployments.
Strategic partnerships are expanding Nvidia’s global AI footprint, with AI “factory” projects now underway in the US, Taiwan, UAE and Saudi Arabia. Gilbert noted that “while sales in China are clouded by export restrictions, the Middle East looks set to become the new launchpad for NVIDIA’s next phase of growth.”
Margins, profits and a ballooning cash pile
Despite the H20 inventory charge, Nvidia posted an adjusted gross margin of 61%, which would have hit 71.3% excluding the China-related adjustment. That’s well ahead of expectations, and the company is guiding toward mid-70% margins later this year.
Adjusted net income came in at US$19.9 billion, while operating cash flow surged to US$27.4 billion. The company’s cash and marketable securities now total US$53.7 billion, up from US$31.4 billion a year ago.
“With profits soaring, NVIDIA is creating a huge cash pile,” Gilbert said. “That war chest gives the company the firepower to keep innovating through R&D, maintain its leadership at the forefront of AI and potentially even reward shareholders with buybacks or dividends,” said Gilbert.
Gaming hits record, autos and robots roll forward
Gaming revenue jumped 48% quarter-on-quarter to a record US$3.8 billion, fuelled by strong uptake of Blackwell-powered GeForce RTX 5070 and 5060 cards. The upcoming Nintendo Switch 2, powered by Nvidia silicon and AI-enhanced DLSS, could offer further upside.
Other business units also showed momentum. Automotive revenue rose 72% YoY, helped by its DRIVE and Omniverse platforms. Meanwhile, Nvidia unveiled a suite of humanoid robotics tools, including its Isaac GR00T model and GR00T-Dreams simulation environment.
Nvidia’s shares rose more than 5% in after-hours trading following the release.