NVIDIA Smashes Earnings Records as Traditional Stocks Stumble - Crypto’s Computing Powerhouse Proves Its Mettle

NVIDIA just posted historic earnings while conventional markets wobble - proving once again where the real technological innovation lives.

The chipmaker's performance underscores what crypto natives already know: computational power drives the next generation of digital assets.

While traditional investors panic over stock dips, blockchain networks keep humming along - powered by the very hardware NVIDIA excels at producing.

Another quarter, another reminder that legacy markets move on sentiment while crypto builds on mathematics. Maybe Wall Street should try using more GPUs and less gut feeling.

Trump and the H20 Licensing Battle

A central challenge for Nvidia is politics. Earlier this year, the Trump administration banned sales of H20 chips to China, costing the company billions. In July, Trump reversed course, granting export licenses—but only if NVIDIA agrees to give 15% of its China revenue back to Washington. CFO Colette Kress confirmed the deal is still not finalized, leaving the company in limbo.

The stakes are high. H20 shipments could add $2 billion to $5 billion in quarterly revenue if approved. But the arrangement could face legal challenges, as critics argue it resembles an unconstitutional export tax. For now, NVIDIA has shipped no H20 units into China, and revenue from the country fell sharply to just 6% of total sales. CEO Jensen Huang insists the Chinese AI market, worth around $50 billion, is too big to ignore. The company is preparing to push Blackwell chips into China once clarity emerges.

NVIDIA, Trump, and the Global Tech Stack

Huang’s message to Washington is clear: U.S. companies must stay active in China. In his words, the “American tech stack” should be the global standard, just as the dollar anchors the financial system. He argues NVIDIA must serve the Chinese market to keep that standard intact. After a meeting with Trump, Huang said licenses are in place and orders are pending. He stressed that sales to China would be a bonus on top of already strong U.S. and global demand.

Still, risks remain. Beijing has been pressing local firms to buy domestic chips instead of U.S. hardware. Reports even surfaced that suppliers were asked to halt H20 production, though accounts conflicted. Meanwhile, analysts estimate as much as 40% of NVIDIA’s sales may still reach China indirectly through resellers in Asia. That gray market adds another LAYER of uncertainty for investors trying to gauge the company’s true exposure.

Blackwell Demand Powers Long-Term Growth

Even as politics cloud the H20 outlook, NVIDIA’s latest Blackwell chips are taking center stage. Sales ROSE 17% from the previous quarter, and Huang described demand as “extraordinary.” The product line already accounts for 70% of data center revenue, with customers racing to secure supply. Large cloud providers, responsible for about half of data center sales, are driving adoption. With Blackwell at the heart of the AI race, NVIDIA remains a critical supplier to the world’s largest tech firms.

The company’s networking unit, grouped under data centers, also nearly doubled revenue to $7.2 billion. Huang highlighted this as proof that computing, networking, and software are converging. Together, these businesses show why NVIDIA is valued at over $4 trillion, even after recent stock volatility. While revenue growth slowed compared to the early AI boom, long-term trends point to continued expansion.

NVIDIA Stocks Face a Balancing Act

For investors, NVIDIA is caught between booming demand and geopolitical risks. On one hand, AI infrastructure spending could reach $4 trillion by the decade’s end. On the other, Trump’s licensing conditions, tariffs, and China’s push for self-reliance threaten near-term stability. Shareholders saw those risks reflected in the latest earnings, where a small miss in data center sales erased the excitement of record revenue.

Still, NVIDIA’s ability to post nine straight quarters of 50%+ growth is unmatched. Its GPUs remain essential to training and running AI models worldwide. As Blackwell chips ramp up, the company appears well-positioned for the next stage of the AI cycle. Yet investors will watch closely for clarity on H20 sales and Trump’s evolving trade policies. The future of NVIDIA stocks may depend less on its technology and more on the unpredictable politics shaping global markets.