Nvidia Keeps Trudging Along In Its First Report of 2025, Anticipating Growth Despite $8B China Impairment

After weeks of earnings, NvidiaNVDA

has tied a delicate, hopeful bow on the first round of 2025 reports. The semiconductor giant, which has built a near-biblical reputation on Wall Street for its breakneck expansion, dropped striking results Wednesday that show the AI hardware boom is not abating.

• Nvidia reported $44.1B in revenue, with $39.1B (88%) coming from its data center business, which grew 73% year-over-year — marking another quarter of slowing but still impressive revenue growth.
• Momentum continues, as adoption of its new Blackwell chip architecture gains popularity from hyperscalers, while the promise of its new NVL72 AI supercomputer is expected to keep orders flowing.

The Outlook (no, not of the Microsoft variety): Nvidia’s outlooks have become gospel on The Street. Its latest report is no exception. Despite recognizing an $8B impairment tied to lost China sales, the firm still guided revenue higher for Q2 to $45B ± 2%. (For context, Bloomberg’s consensus was $45.5B.) It shows that demand from hyperscalers — which now includes sovereign nations, as CEO Jensen Huang had predicted — is more than sufficient to offset sanction upsets in future quarters. The real question is: What will this highly profitable machine, boasting 70%+ margins and over $50B in cash — do with its massive mound of dry powder?