Nvidia CEO Says There’s No Diversion of Chips Overseas

Nvidia reported stronger-than-expected results and raised next-quarter revenue guidance to about $65 billion, driving the stock up more than 5% and buoying AI-focused peers; CEO Jensen Huang called demand “very, very strong” and said Blackwell sales are “off the charts.” The company continues to exclude China from revenue forecasts even as it seeks to reengage the market, leaving uncertainty about future sales there. Gross margin narrowly missed estimates, prompting analyst questions about rising input costs, but Huang stressed diverse end uses for Nvidia’s chips to bolster confidence in the data-center build-out payoff.

Analysis

Nvidia reported stronger-than-expected results and raised next-quarter revenue guidance to about $65 billion, beating analyst estimates and driving the stock up more than 5% in late trading; CEO Jensen Huang described demand as "very, very strong" and said Blackwell sales are "off the charts," underpinning the upbeat market reaction and lifting broader AI peers. The company continues to exclude China from its revenue forecasts while expressing a desire to "reengage" the market, leaving a material growth avenue unresolved because investors received no clarity on the timing or terms under which sales could resume there. Gross margin narrowly missed expectations, prompting analyst questions about rising input costs, which introduces margin-risk even as top-line momentum remains powerful. Management emphasized diverse end uses for Nvidia’s chips to counter concerns about the payoff from the large data-center build-out, making follow-on adoption metrics and margin trends the primary signals to confirm sustainability of the current revenue trajectory.

Key Decisions for Investors

• Given the raised $65 billion guidance and strong Blackwell demand, consider overweighting NVDA exposure tactically while sizing positions to reflect potential valuation sensitivity
• Monitor gross-margin trajectory and management commentary on input costs in the next quarter as a primary risk factor; consider hedging or trimming positions if margins continue to underperform
• Treat China reengagement updates as a binary catalyst—reduce stretch exposure if clarity on market access is not forthcoming, increase exposure if concrete reentry terms appear
• Use the recent >5% rally as an opportunity to lock in gains incrementally and wait for confirmation of sustained demand and margin recovery before adding materially to positions