As the market prepares for Nvidia’s earnings announcement for the first quarter of fiscal year 2026, set to take place after the market closes on Wednesday, anticipation is building. Investors and analysts alike are keen to understand the implications of recent U.S. chip export regulations on Nvidia’s global operations and future projections.
However, not all experts believe that the export controls are the most critical aspect of Nvidia’s performance. Kevin Cook, a seasoned equity strategist at Zacks Investment Research, emphasizes that the introduction of the new GB200 NVL72 hardware is a pivotal focus for stakeholders. This cutting-edge exascale computer, which began shipping in February, represents a significant advancement in Nvidia’s product lineup.
The GB200 NVL72 systems, equipped with 72 GPUs and priced at approximately $3 million each, have generated considerable interest. Despite the strong demand and high expectations leading into this year, the turbulence surrounding DeepSeek in late January led many analysts to revise their delivery forecasts downward.
Cook points out that this quarter marks the first time the company has shipped these machines, leaving uncertainty about their market performance. He suggests that if Nvidia’s CEO, Jensen Huang, announces a target of 10,000 units for the second quarter, it would impress investors significantly. Achieving such a target could translate to $30 billion in revenue, although Cook speculates that actual deliveries may fall short of that figure.
This earnings report will provide insights into the appetite for advanced AI technology among enterprises. A key question remains: will businesses upgrade their AI infrastructure with each new release, akin to consumer behavior with smartphones? The answer to this could have profound implications for Nvidia’s future.
While immediate stock fluctuations may occur in response to Nvidia’s comments on U.S. export controls, Cook believes that the long-term valuation will be more influenced by the demand for the GB200 NVL72. Nvidia’s stock has shown resilience in the past, quickly recovering from short-term market shocks.
Cook notes that despite the challenges posed by export restrictions, Nvidia continues to find a robust customer base outside of China. The company maintains strong relationships with major hyperscalers and is likely to benefit from ongoing demand for its AI chips. Recent developments, such as Stargate’s new project in the Middle East, further bolster this outlook.
Ultimately, Cook’s analysis hinges on the performance of the GB200 NVL72 units. He believes that as long as delivery expectations remain strong, any revenue fluctuations in this quarter will be overshadowed by the positive momentum for the remainder of the year.