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Nvidia’s Strong Revenue Growth Amid Ongoing Trade Uncertainty
Nvidia (NASDAQ: NVDA) continues to experience robust demand for its GPUs, reporting a 69% year-over-year revenue increase to $44.1 billion for fiscal Q1 2026, following a 64% compound annual growth rate from fiscal 2020 to fiscal 2025. The company also recorded a net income of $18.8 billion last quarter, reflecting a net profit margin averaging 36% over the past five years. However, Nvidia faces potential risks from changing trade policies, particularly concerning market access in China, where it lost $2.5 billion in revenue due to previous export restrictions.
Despite concerns over a possible recession, Nvidia’s shares have surged nearly 1,590% over the past five years, significantly outperforming the S&P 500’s growth of 95% during the same period. Currently, Nvidia’s market cap stands at $4.2 trillion, with a forward price-to-earnings ratio of 39.9, while analysts predict earnings growth will average 32% annually from fiscal 2025 to fiscal 2028. Yet, the stock was not included in the Motley Fool’s list of the 10 best stocks to buy now.
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