Nvidia: China Is Not The AI Problem

(9min)

Summary

  • Nvidia Corporation delivered strong Q1 2026 results, beating expectations, despite significant headwinds from U.S. export controls on AI chips to China.
  • Data center and gaming revenues surged, but a $4.5 billion H20 write-off and margin pressure highlight the real impact of export restrictions.
  • While China’s $50 billion AI market is effectively closed, Nvidia is considering new products for China but faces ongoing regulatory risks.
  • Despite export challenges, I maintain a buy rating on NVDA stock and raise my price target to $170.85, citing Nvidia’s AI leadership and resilient growth.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »

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Oselote

Nvidia Corporation (NASDAQ:NVDA) – the dominant force in data center acceleration and AI infrastructure – delivered strong Q1 2026 earnings, beating Wall Street expectations on both revenue and earnings. Despite tightening U.S. export controls on AI

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This article was written by

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Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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