Nvidia (NASDAQ: NVDA) reported first-quarter earnings with a revenue increase of 69% year-over-year, reaching $44.1 billion, and a net income of $22.1 billion, a 31% rise. However, sales growth has decelerated from 78% last quarter, while gross margins decreased from 73% to 60.5%. These changes come amid challenges from regulatory issues in China, leading to a $4.5 billion impairment charge.
Nvidia’s market cap currently stands at $3.4 trillion, raising concerns about its potential for future growth. Analysts suggest that replicating its previous 1,500% return would mean an impractical market cap of $51 trillion, exceeding the combined total of all NASDAQ companies at around $30 trillion. Despite these challenges, Nvidia may still provide value through dividends and stock buybacks.
