Nvidia's Momentum Shows No Signs of Slowing. But Is It Too Late to Buy the Stock?

Nvidia (NASDAQ: NVDA) once again demonstrated rapid growth as demand for its graphics processing units (GPUs) remains robust. Even with new export controls severely limiting its ability to sell into China, the company projects strong revenue growth moving forward as the artificial intelligence (AI) infrastructure buildout continues to march along.

The stock is up an astonishing 1,450% over the past five years, as of this writing. Let's take a closer look at Nvidia's results to see whether the stock still has a lot of growth left in the tank.

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Blackwell leads the way despite China headwinds

The new export controls, which restrict Nvidia's ability to sell its chips in China, are expected to have a material impact on the company's revenue. It will take an $8 billion hit to sales in the second quarter alone. It noted that its H20 chip has been sold in China for more than a year and that no grace period was provided to let it sell through its inventory. In Q1, it generated $4.6 billion in H20 revenue, all of which occurred before April 9, and took a $4.5 billion charge. It said Chinese revenue would have been $7 billion in for the quarter if not for the export controls.

The company made a plea to be allowed to sell into China, stating that not having access to the Chinese market will benefit its foreign competitors in China and worldwide. It said China already has AI, and the assumption that it can't make AI chips is false. It believes the Chinese AI accelerator market will eventually grow to $50 billion, while noting that export restrictions spurred China's innovation and scale.

Even without access to China, however, Nvidia still forecasts its fiscal Q2 revenue to be approximately $45 billion, which would represent 50% growth. This will largely come from the continued ramp-up of its Blackwell GPUs.

Blackwell drove Nvidia's revenue growth in Q1, with the company calling it the fastest ramp-up in its history. Data center revenue surged 73%, with Blackwell contributing nearly 70% of its data center compute revenue in the quarter.

Nvidia stated that AI factory buildouts, which are large-scale rollouts that use its full stack of solutions, not just GPUs, are driving significant revenue growth. It added that AI factory deployments are accelerating, with nearly 100 Nvidia-powered sites in progress this quarter, which was twice as many as last year. Notably, the average number of GPUs per factory has also doubled.

It also said that AI inference demand is soaring, and it believes that demand for AI computing will accelerate as AI agents become mainstream.

Nvidia's other segments were also strong. Gaming revenue jumped 42% to $3.8 billion, while professional visualization revenue rose by 9% to $509 million, and automotive and robotics revenue increased 72% to $567 million.

Nvidia's overall revenue climbed 69% to $44.1 billion, surpassing the $43 billion guidance it issued in February. Adjusted earnings per share (EPS), excluding its H20 write-off, grew 33% to $0.96 and topped the $0.93 analysts' consensus as compiled by LSEG.

Adjusted gross margin, excluding charges, was 71.3%, 220 basis points lower than last year. As Blackwell continues to ramp up, it is looking for gross margins to return to the mid-70% range later in the year.

The company continues to generate a boatload of cash, with operating cash flow of $27.4 billion and free cash flow of $26.1 billion in the quarter. Nvidia ended the quarter with net cash and marketable securities of $53.7 billion and $8.5 billion in debt.

Is Nvidia stock still a buy?

As AI infrastructure spending continues to surge, Nvidia remains the company best positioned to benefit. Its GPUs are still the backbone of AI data centers, and as the market shifts further toward real-time inference, agentic AI, and more advanced reasoning tasks, demand for computing power is expected only to grow. With both industry-leading hardware and a powerful software ecosystem in CUDA, Nvidia's dominance in the AI infrastructure market remains firmly intact.

While the loss of being able to sell into China is a blow to the company, it still has a long runway of growth in front of it. There also is always the possibility that the new export controls will be rolled back as part of the broader trade deal, which would be a huge bonus for the company.

Trading at a forward price-to-earnings (P/E) ratio of 31 times this year's analyst estimates, the stock is still attractively valued.

If AI infrastructure spending is still in its early innings, which it appears to be, Nvidia continues to look like a solid buy at these levels. The biggest risk to the stock would be a sudden slowdown in AI spending, but right now, there are few signs of that.

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Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.