Nvidia Rides the AI Supercycle With Another Beat – And Still Looks Underpriced

• Nvidia reported strong quarterly results, with the stock gaining 5% after-hours.
• Data centers led revenue growth while the gaming segment was up 42% year-on-year.
• Export restrictions in China caused $2.5 billion write-offs; risks remain.
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NVIDIA Corporation (NASDAQ:) is usually the last of the big tech companies to report its quarterly results, and it followed that pattern again this time. The released after yesterday’s session were positive, as shown by the stock’s 5% gain in after-hours trading.

Along with the results, Nvidia’s management also shared very optimistic comments, similar to last quarter. CEO Jensen Huang highlighted that their latest product, the Blackwell NVL72, puts Nvidia at the center of the global AI boom. He believes this trend will speed up even more, driving stronger demand.

Despite some challenges with exports to China, this sets up a strong case for the stock to keep rising.

Nvidia Extends Earnings Beat Streak

Here are the key financial results for Nvidia’s first quarter of fiscal year 2026:

Nvidia has now grown both its revenue and earnings per share every quarter for over two years, consistently beating market expectations — including this quarter.

Looking closer at the numbers, data centers remain the company’s top revenue driver, bringing in $39.1 billion, a 10% increase from last year. The gaming segment also showed strong momentum. While it generated a much smaller $3.8 billion in revenue, that figure was up 42% year-on-year, a positive sign for future growth.

On the strategic front, Nvidia announced plans to build factories in the US with its partners. These will form the core infrastructure for producing supercomputers powered by Nvidia’s top products. The company also said similar investments are planned in Saudi Arabia and the United Arab Emirates.

China Export Restrictions Weigh on Outlook

Alongside the positive news, there are also some challenges that weigh on Nvidia’s overall outlook. The biggest issue is the ongoing restrictions on selling advanced technology to China, one of Nvidia’s key markets. Last month, it was confirmed that selling H20 chips to China now requires special licenses. As a result, Nvidia had to write off $2.5 billion in unrealized sales.

Looking ahead, losses are expected to increase. In the next quarter, the company may have to write down as much as $8 billion for similar reasons. Despite these headwinds, Nvidia has forecast revenue of around $45 billion for the upcoming quarter, with a margin of error of 2%.

Nvidia Stock Technical Outlook

In after-hours trading, Nvidia’s stock is hovering around $141 per share, a level where there is strong selling pressure. If the stock can break through this zone—which appears likely—it could move toward its all-time high near $152 per share.

If Nvidia’s steep uptrend line is broken, it may not signal a full reversal of the long-term upward trend. However, it could lead to a pullback toward the support level around $122 per share.

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