Nvidia shattered expectations with its latest quarterly report, posting a staggering 69% year-over-year revenue increase to $44.1 billion. The chip giant's impressive performance was fueled by robust demand for its new Blackwell processors, which alone generated $24 billion. Data center networking and gaming segments also showed remarkable strength, growing 64% and 48% respectively compared to the previous quarter. The stellar results triggered a 5% stock surge in after-hours trading, pushing Nvidia closer to challenging Microsoft as the world's most valuable company. With a market capitalization approaching $3.3 trillion, analysts remain bullish, with several raising their price targets—some as high as $185.

Challenges in the Chinese Market

Despite the positive momentum, Nvidia faces significant headwinds from US export restrictions targeting China. The company reported a $2.5 billion revenue hit in the most recent quarter due to these limitations, with projected losses of $8 billion in the current quarter. These figures underscore Nvidia's vulnerability to geopolitical tensions, as China previously accounted for 12.5% of total sales. However, management remains optimistic, forecasting quarterly revenue of approximately $45 billion—representing 50% year-over-year growth—and highlighting potential billion-dollar opportunities in Saudi Arabia, UAE, and Taiwan as alternative growth markets.

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Nvidia Stock: New Analysis - 29 May

Fresh Nvidia information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

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Source StockWorld