Nvidia’s latest earnings call delivered the usual superlatives — $81.6 billion in revenue, 85 percent year-over-year growth, and a third consecutive quarter of accelerating expansion — but the conversation quickly turned to what the company is losing, not just gaining. For the first time, management confirmed that revenue from China, once a fifth of its data center business, has effectively fallen to zero. Strict U.S. export controls have handed the Chinese market to local rival Huawei, whose chips now dominate the country’s AI infrastructure.
The stark admission hung over an otherwise stellar report. Shares closed Friday at €185.46, down roughly 2 percent on the day and nearly 4 percent for the week. Since hitting an all-time high of around €201 in mid-May, the stock has shed about 8 percent. The relative strength index has cooled to 40.5, signaling waning momentum. Yet Nvidia remains up 15 percent year-to-date — a reminder that the selloff is more about profit-taking than panic.
The fundamental picture, by contrast, keeps strengthening. The data center segment alone generated over $75 billion in revenue, and Chief Executive Jensen Huang described the current expansion as “the largest infrastructure buildout in human history.” For the current quarter, Nvidia guided to roughly $91 billion in sales, comfortably ahead of analyst estimates. Huang pointed to “agentic AI” — systems capable of autonomously completing productive tasks — as a rapidly scaling opportunity across industries.
Should investors sell immediately? Or is it worth buying Nvidia?
With China off the table, Nvidia’s next great hope is a product generation code-named Vera Rubin. The platform, which includes a CPU specifically designed for agentic AI, is slated for mass production in the second half of 2026. All major cloud providers are already working on integration, and Nvidia expects nearly $20 billion in CPU revenue this year alone. Global spending on AI infrastructure could hit $1 trillion by 2027, with tech giants such as Alphabet, Microsoft and Amazon each earmarking close to $200 billion.
Analysts remain largely undeterred by the recent pullback. TD Cowen raised its target to $275, while the consensus estimate sits at $294. William Blair echoed the bullish view, citing unbroken hardware investment from the hyperscalers. On the charts, support at the 50-day moving average near €168 is seen as a critical level; holding it would likely allow the stock to resume its long-term uptrend.
Investors won’t have to wait long for fresh color. Nvidia’s management is due to appear at the TD Cowen technology conference on May 28 and the Bank of America Global Technology Conference on June 4. Both events are expected to yield further details on Vera Rubin demand, the broader pipeline, and how the company plans to navigate a world where its fastest-growing market has suddenly disappeared.
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