Nvidia’s record earnings defy export ban

Hey Superheroes,

The U.S. trade court may have blocked Trump’s latest tariff push under emergency powers, but markets aren’t exhaling just yet. With tensions flaring again between the world’s two biggest economies, investors are bracing for fresh trade war headlines and potential supply chain fallout.

The U.S. market’s quarterly earnings season is still going strong. Nvidia was easily the most hyped result of the week – with the full breakdown of it in the next section.

Wall Street looks set to end the week in the green with AI momentum helping keep markets afloat. Closer to home, the ASX 200 held its ground, supported by a bounce in mining stocks and a surprise lift in consumer confidence.

Let’s dive into this week’s biggest stories.

Nvidia’s earnings: Mixed chips, maximum hype

True to its name as the world’s second largest public company, Nvidia’s Q1 results sent positive vibrations all throughout Wall Street.

Despite losing access to a US$50 billion Chinese AI market, the AI chip juggernaut still managed to beat expectations. Nvidia posted US$44.1 billion in revenue for the quarter, up nearly 70% year-on-year. Adjusted earnings per share came in at US$0.96, topping analyst estimates of US$0.93.

The strong results saw investors shrug off the bad news – which included a massive US$4.5 billion inventory write-down and guidance that forecasted a US$8 billion revenue hit from U.S. export restrictions in China.

🧨 No China, no problem?

Nvidia’s China revenue fell short of expectations, coming in at US$5.5 billion for the quarter or just 12.5% of total revenue. 

CEO Jensen Huang didn’t sugar-coat the outlook, calling the China AI market “effectively closed to US industry.” Still, the company is exploring alternate chips it can legally export.

But analysts and investors alike seem to be betting Nvidia’s explosive AI growth will more than compensate. AI inference demand surged 10x over the past year, with tech giants like Microsoft deploying “tens of thousands” of Nvidia’s new Blackwell GPUs each week.

🧠 AI Is the new infrastructure

In Huang’s words, “countries are now treating AI like they do electricity or the internet, and Nvidia sits at the centre of this profound transformation.”

The company remains bullish on its long term margins and is targeting mid-70% gross profit margins later this year. 

That, plus its U.S. manufacturing expansion (including a new million square-foot Texas plant), is giving Wall Street confidence it can weather near term turbulence.

With demand from OpenAI, Meta and Amazon only growing, Nvidia’s long-term story hasn’t changed – even if the China chapter is closing.

🔦  Some other things we’re shining the Spotlight on:

• WISETECH’S A$3.25B GRAB: WiseTech Global (ASX:WTC) has acquired U.S.-based E2open for A$3.25 billion (US$2.1 billion). The acquisition, funded by a new US$3 billion debt facility, expands WiseTech’s North American reach and brings over 5,600 customers into its network – including more than 250 blue-chip firms.
• UBER’S AV DETOUR: Uber (NYSE:UBER) shares dropped 4.5% this week after reports revealed Tesla is planning to launch its own robotaxi service in Austin on 12 June. The news revived concerns over competition in autonomous transport, though Uber continues to build partnerships with other autonomous vehicle (AV) firms like Waymo and Pony AI.
• DATELINE DIGS DEEP: Dateline Resources (ASX:DTR) shares soared – and became Superhero’s #3 most traded ASX stock this week – after new findings at its U.S. gold project suggested a larger mineralised system may lie beneath the surface. Dubbed a potential “gold iceberg,” the Colosseum site lit up with pathfinder elements, fuelling fresh investor optimism as gold prices hover near record highs. 

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