TOP STORY
📈 Nvidia Up 5% After Data Centre Sales Soar 73%

🐝 Nvidia ($NVDA) reported earnings last night so it’s time for a special edition Weekly Buzz breaking them down!

📈 Based on the stock’s 5% jump this morning, investors were pleased, with NVDA tracking for the company’s best post-earnings stock performance in a year and jumping to its highest level since January (and now only ~6% under its all-time-high).

🏆 Nvidia even retook its throne as the Most Valuable Company in the world, surpassing Microsoft.

📊 And even if you don’t hold it directly, if you hold any S&P 500 ETFs (like $SPY) - 6% of those holdings are in Nvidia, so it’s worth paying attention.

🤿 So, without further ado, let’s dive into the numbers…

🤑 Nvidia Revenue Soars 69%, Beating Profit Expectations by 11%

• 💰 Revenue: $44.05B, up 69% from last year, and 1.7% higher than analysts expected

• 🎯 Forward Revenue Targets: $45B, 2% below analysts’ expectations with a $8B hit from chip restrictions in China

• 💸 Earnings per Share: $0.81, up 33% from last year, 11% higher than analysts expected

✨ Highlights

• 🤖 The biggest revenue driver by far was Nvidia’s AI data center revenue, which grew 73% year-over-year and makes up 88% of total revenue.

• 💰 Data centre growth has been driven by both increased spending across Big Tech (with Meta announcing a big increase in AI spending) and Nvidia’s new lineup of ‘Blackwell AI chips’.

• 🚀 The new Blackwell chips ramped to a massive 70% of sales this quarter, compared to only ~25% last quarter, with Jensen Huang calling it the ‘fastest product ramp in Nvidia history’

• ☁️ Cloud providers like Microsoft Azure, Google Cloud, Oracle, and Amazon Web Services still make up half of Nvidia’s data centre revenue

• 🎮 Gaming - once Nvidia’s main business - grew 42% to $3.8B as Nvidia chips are used as the processor for the new Nintendo Switch 2 console.

• 🚗 Auto & Robotics revenues (including the chips and software for self-driving cars) grew 72% year-over-year to $587M, but still make up only <2% of the total business.

⭐️ Despite the already insane growth to date (with Nvidia up a massive +1,477% in the past 5 years), Jensen made bold claims about the future of AI, saying:

😰 While there was a lot to celebrate this quarter, the earnings report did raise some big concerns about slowing growth and China, but before we take a look at those + how analysts have been reacting to the numbers, a quick word from today’s sponsor State Street Global Advisors! 

SPONSORED BY STATE STREET GLOBAL ADVISORS
⭐️ MDY: Nothing “Mid” About Investing in Mid Caps

⭐️ SPDR® S&P MIDCAP 400® ETF Trust (MDY) is the original mid-cap ETF to help individuals “own the middle”. Thirty years ago, State Street Global Advisors launched the very first mid-cap ETF, giving investors access to the middle market—where opportunity meets resilience. Today, MDY continues to track the S&P 400® MidCap Index, offering a unique blend of growth potential and steady performance.

🏆 Benefiting from the Middle Ground Mid-cap firms represent a unique opportunity set when it comes to operations. Midcaps exhibit traits of both large and small caps, with more managerial maturity than small caps and more operational nimbleness than large caps. Additionally,  mid caps may help avoid some sector concentration that can be seen in the large- and small-cap indices providing a slightly more diversified portfolio when adding mid caps alongside existing large- and small-cap holdings.

🕵️‍♂️ Why the Middle is Overlooked ETF investors often overlook the middle in favor of large-cap exposures as seen through assets under management.1 However, blame for the lack of love to mid caps cannot be attributed to individual investors alone; historically large-caps stocks have received about two times more coverage than mid-cap stocks from fundamental analysts,2 and small-cap stocks have historically received far more attention in the academic research space than mid-cap stocks.3

💡 Mid-cap companies may provide an ideal balance for many investors, offering growth potential while having the managerial maturity associated with large caps. Consider SPDR® S&P MIDCAP 400® ETF Trust (MDY), the original mid-cap ETF.

^{_{1 S **Morningstar as of March 31, 2025 in Large Blend, Mid Cap Blend and Small Cap Blend Categories for US Listed ETFs. Large Cap Blend has $3.08 trillion, Mid-Cap Blend has $302 billion and Small-Cap Blend has $284 billion.}}

^{_{2 Bloomberg L.P.; as of March 31, 2025 based on the average number of analyst recommendations received by each firm in the S&P 500 and S&P 400 index.}}

^{_{3 A search on the research repository website www.ssrn.com, the Social Science Research Network, for the words “Small Cap” or “Small Stocks” reveal there are 508 papers written on small caps.  A search for “Mid Cap” or “Mid Cap Stocks” reveals 134 papers.}}

^{*See State Street Global Advisors Investments Disclaimer at the end of the newsletter}

TOP STORY CONTINUED
😰 Nvidia’s Biggest Concerns: Slowing Growth and Struggles in China

Back when Nvidia reported its last earnings in February, the #1 concern was slowing growth.

And while that trend continued this quarter (with growth falling to its slowest pace in 2 years), it seemed like less of a concern as Nvidia had a very clear reason for slowdown this quarter - struggles in China.

🇨🇳 Banned from China

❌ Back in April, Trump and the US government decided to block Nvidia from selling chips into the Chinese market, causing Nvidia to fall by 7% overnight.

💰 This quarter, we got to see the impact of the ban, with Nvidia estimating an $8B hit as it effectively loses access to a market that was previously 13% of its revenue.

👎 Huang has been a vocal critic of the ban, saying that the export controls were ‘misguided’ and are going to encourage Chinese AI developers to switch to homegrown chips.

😬 Even if the ban is short-lived, the long-term problem is that Chinese giants like Alibaba or Tencent have been reliant on the H20 chip, and this ban will accelerate China’s development of domestic chips to compete with Nvidia (such as from Huawei).

While Nvidia may lose China, it may gain the Middle East, after Trump announced large AI projects and investment agreements with Saudi Arabia, Qatar, and the UAE, reversing a push by Biden to clamp down on the region's access to the technology.

⭐️ Analyst Reactions

✅ Overall, despite the struggles in China, analysts reacted positively to Nvidia’s earnings. According to data from TipRanks, Nvidia remains a ‘strong buy’ among the majority of analysts.

🤩 The overall theme was that despite the massive headwinds in China and the $8B loss, Nvidia was still able to beat estimates and even project modest growth for next quarter, summed up nicely by Cody from Benchmark:

💡 My Thoughts

As I shared on Blossom on Jan 30th, I added Nvidia to my portfolio (on top of my exposure to the stock through the S&P 500) after Jensen’s announcements at CES. I’m now up +13% since. Including my S&P 500 holdings, Nvidia makes up 7% of my total portfolio.

Overall, I have a very similar reaction to Nvidia’s earnings as the analysts. While the China struggles are worrisome (and I actually think will likely have lasting impact), from all the Big Tech earnings I covered, the tech giants are continuing to spend more and more on AI, and the use cases are starting to get really exciting (like the 100 new AI features Google announced). So, as for me, I plan to continue holding my Nvidia stock!

🌼 Blossom’s Thoughts

🌼 In the Blossom community, Nvidia was the #3 Most Sold and only the #8 Most Bought this week, meaning investors were selling in the run-up to earnings. I’ll be curious to see whether the earnings report drives more buying or selling over the next week…

🏆 Nvidia ranks as the #1 Most Held Stock in the US, and since last earnings, has de-throned TD Bank ($TD) as the #2 Most Held Stock in Canada and is now behind only Enbridge ($ENB).

💬 As the #1 Most Mentioned there’s been a ton of awesome posts from the community sharing their perspectives so make sure you visit the NVDA stock page on Blossom or visit my post here to join the discussion!

SPONSORED BY RYSE
🏠 This Smart Home Company Hit $10M in Revenue - and It’s Just the Beginning

🏠 No, it’s not Ring or Nest—it’s RYSE, the company redefining smart home innovation, and you can invest for just $1.90 per share.

🪟 RYSE’s patented SmartShades are transforming how people control their window shades—offering seamless automation without costly replacements. With 10 fully granted patents and a pivotal Amazon court judgment safeguarding their technology, RYSE has established itself as a market leader in an industry projected to grow 55% annually.

💰Last year, RYSE surpassed $10 million in total revenue, expanded to over 100 Best Buy locations, and grew 71% year-over-year. With partnerships in progress with major hotel chains like the Fairmont, they’re set for even bigger milestones, including international expansion and new product launches.

⭐️ This is your last chance to invest at the current share price of $1.90 before their next stage of growth drives even greater demand.

^{*This is a paid advert from RYSE and does not represent an investment recommendation by Blossom! Make sure to always do your own research.}