Nvidia Breaks Another AI Sales Record—But China Sanctions Hit Bottom Line | GlobalWorldCitizen.com

Nvidia Corp. has once again shattered its own sales records, raking in over $44 billion in quarterly revenue, cementing its lead in the AI hardware revolution.

 But amid the euphoria, a sharp dip in earnings growth has emerged, revealing the pressure of U.S. export controls to China—a market worth billions to the tech giant.

Key Financial Highlights

• Revenue: $44.1 billion for the quarter ending April 27
  (Wall Street estimate: $43.3 billion)

• Year-over-year growth: +69%

• Net income: $19.9 billion

• Adjusted EPS: $0.83 (vs $0.73 forecast)

• Gross margin: 61% – Nvidia’s weakest margin since 2022

Despite outperforming expectations, Nvidia’s earnings growth slowed to 33%, far below the 70%+ growth streak it enjoyed in previous quarters.

What’s Behind the Slower Profit Growth?

The primary culprit?
A $4.5 billion charge related to U.S. restrictions on exporting H20 AI chips to China—a region that represents a $50 billion market for Nvidia.

“The China speed bump is real,” said Rosenblatt analysts, noting the company now expects to lose $8 billion in revenue during the summer quarter due to the H20 export ban.

Global Impact & Market Position

Nvidia remains the undisputed global leader in AI computing:

• Powers everything from OpenAI’s ChatGPT to Tesla’s autonomous driving systems

• Controls 75% of the global AI chip accelerator market

• Now valued at $3.3 trillion, trailing only Microsoft ($3.4T) in market cap

Since ChatGPT’s breakout in November 2022, Nvidia stock has soared over 700%, vastly outperforming the S&P 500.

The company’s GPU dominance has made it the central engine of the global AI boom.

CEO Jensen Huang: From Denny’s Busboy to Tech Titan

The company’s legendary CEO and co-founder, Jensen Huang, started his career as a busboy at Denny’s. Now, he ranks as the 11th-richest person in the world with a personal net worth of $119 billion, according to Forbes.

“Huang’s journey from diner to data centers is one of the most powerful rags-to-riches stories in tech history.”

Market Reaction

• Nvidia shares rose +3% to $138 post-earnings

• Prior to earnings, shares dipped slightly to $134.81

• The S&P 500 is up 6% in May, heading for its best month since 2023

JPMorgan analysts said Nvidia needed a “positive surprise” to help sustain the market rally—and it delivered.

GlobalWorldCitizen.com Insight

Nvidia’s earnings aren’t just another quarterly update—they are a barometer of the global AI economy. From silicon valley to Shanghai, the company’s reach is now entangled with geopolitics, regulatory battles, and the race for AI supremacy.

As governments scramble to control AI’s power, companies like Nvidia walk the line between innovation and regulation.

At GlobalWorldCitizen.com, we’ll keep decoding the truth behind the trillion-dollar tech wars shaping the 21st-century global economy.