Nvidia faces slowing growth, China export bans, and valuation concerns despite strong AI demand. Read an analysis of NVDA stock here.

Nvidia reported better-than-expected earnings and revenue on Wednesday, as the company's booming data center business recorded year-over-year growth above 73%. The stock rose about 6% in extended trading.

Nvidia CEO Jensen Huang told investors on an earnings call that the $50 billion market in China for AI chips is “effectively closed to U.S. industry.”

Nvidia Corporation downgraded to Buy as AI infrastructure spending slows, with future growth and margins under pressure. Click for my NVDA Q1 earnings update.

Nvidia Corp. ‘s shares rose almost 5% in extended trading after the company reported better-than-expected earnings and revenue, with its data center business growing 73% year-over-year. The growth was impressive enough that investors were even willing to forgive Nvidia’s guidance miss, and its stock rose 4% after-hours.

The company continued to grow fast in its most recent quarter despite new rules restricting the sale of A.I chips to China.

Prior to the AI boom, Nvidia served the video gaming market with its graphics processing units (GPUs), so the company had a solid main business before branching out into AI. IonQ, which launched in 2015 and went public in 2021, started out specializing in a new and complicated technology, so its route to profitability may be longer and riskier.

Nvidia exceeds revenue expectations in the first quarter. Despite export restrictions on chip sales to China, the company still expects around 50% revenue growth.

Nvidia reported Q1 fiscal 2026 revenue grew 69% from a year ago, to $44.06 billion, but that growth was down from 78% growth seen in last year's Q1, meaning year-over-year growth has now slowed for five straight quarters.

FY26 showcases impressive growth, driven by Jensen Huang's visionary leadership. Click for my updated look at NVDA's latest earnings.