Why is Nvidia up today?
Nvidia stock rallies as Q1 revenue hits $44.1B and guidance tops forecasts
Nvidia (NVDA) stock has rallied following a robust Q1 earnings report, with revenue rising 69% year-over-year to $44.1 billion and EPS climbing 33% to $0.81.
While EPS slightly missed analyst estimates, strong sales and upbeat guidance of $45 billion for Q2 have fueled bullish sentiment. The stock broke out last week, briefly pulled back, and resumed its upward trajectory. CEO Jensen Huang’s plan to sell over $800 million in shares may create short-term volatility, but overall investor appetite remains strong due to Nvidia’s dominant AI market position. Investors are also encouraged by the company’s ability to consistently outperform tech peers in both earnings growth and strategic execution.
Trade Risks and Global Strategy in Focus
Tensions between the U.S. and China continue to cloud Nvidia’s outlook, with halted H20 chip exports resulting in a $5.5 billion write-off and a potential $8 billion hit in Q2. Despite these risks, Nvidia is doubling down on its U.S. manufacturing strategy with large-scale chip and AI supercomputer facilities underway in Arizona and Texas.
The company is also developing a new chip for China while expanding global partnerships—including chip deals with Saudi AI firm Humain and approved exports to the UAE—bolstering its strategic resilience amid geopolitical challenges. Huang has emphasized that near-term tariffs won’t derail Nvidia’s operations, thanks to diversified supply chains and a global customer base.
Analyst Sees $1T Opportunity Ahead
According to analyst Dmytro Kharkov, Nvidia’s stock momentum is driven by five key factors: its selection by Jefferies as a “Franchise Pick,” strong global demand and partnerships, positive tech sector sentiment, exceptional financial performance, and the launch of high-margin Blackwell AI chips.
Kharkov says:
"Nvidia remains the most dynamic and potentially profitable stock of the year. I expect accelerated growth in June–July, especially amid a possible Fed rate cut."
Kharkov notes that these chips could push gross margins from 61% to as high as 80%, opening the door to a projected $1 trillion revenue opportunity. While some firms caution about long-term AI spending fatigue, Nvidia remains a top play for exposure to the accelerating AI revolution. With expanding use cases in cloud computing, data centers, and autonomous systems, Nvidia’s future potential remains deeply tied to global digital transformation trends.
Recently we wrote that as of June 4, Nvidia stock is trading at $141.22, up 2.8% in 24 hours, extending its upward momentum and reclaiming its position as the most valuable publicly traded U.S. company with a $3.45 trillion market cap.
