Nvidia’s Record-Breaking Quarter: The AI Arms Race Intensifies

GM Hustlrs,
☕️ Quick Brew: Here’s the latest we’re unpacking for you today.

• Nvidia’s AI Surge: Nvidia set a new record with $44.06 billion in quarterly revenue. The company remains at the center of the global AI buildout, even as restrictions on sales to China have put some pressure on profits.

• Trade Tensions Rise: The U.S. and China are in a legal and economic standoff over tariffs and rare earths. This situation is set to change how international trade works.

• AI Data Center Boom: Nearly 100 new AI data centers are being built around the world—double last year’s pace. Demand for Nvidia chips is driving much of this rapid growth.

The Big Stories

Nvidia’s Record-Breaking Quarter 

Nvidia ($NVDA) just posted its highest quarterly revenue ever, reaching $44.06 billion. 

This result blew past what analysts predicted and jumped from $26 billion in the same quarter last year.

The big driver was Nvidia’s data center segment, pushed by strong AI demand. 

Data center sales grew 73% compared to last year. Each week, buyers pick up about 72,000 new Nvidia chips. Companies like Microsoft are using these Blackwell GPUs to boost their work with OpenAI.

Not everything went Nvidia’s way. The company took an $8 billion hit due to inventory write-offs linked to U.S. export rules affecting China. 

CEO Jensen Huang described China’s market as “closed to industry,” with new export bans cutting off sales of Hopper data center products in the region.

Even with these hurdles, Nvidia expects second-quarter revenue to land around $45 billion at the midpoint. If not for the trouble in China, demand could push numbers even higher.

Tariff Legal Drama
The U.S.-China trade standoff took a new turn this week. 

A federal trade court first blocked tariffs put in place during the Trump administration, but an appeals court quickly put those tariffs back in place. 

Now, the Trump team plans to take the case to the Supreme Court, which could shape how much control the president has over trade decisions.

Tom Lee, co-founder of Fundstrat, believes this dip could be a golden opportunity. His research indicates that market sentiment often overreacts to news, leading to temporary drops. During these moments, Lee advises investors to buy marginally undervalued stocks, especially those with strong fundamentals.

He encourages investors to maintain a long-term view, as historically, those who buy during downturns often see significant gains when the market stabilizes. Lee’s philosophy is rooted in the belief that emotional reactions often lead to irrational selling. Taking advantage of these dips might just pay off in the long run.

Gold Price Forecast in 2025: What Experts Predict

Gold has demonstrated significant growth over the past year, with its upward momentum supported by geopolitical uncertainties, economic volatility, and strong demand for safe-haven assets.

Going forward, most analysts expect gold prices to continue rising in 2025. 

While there are some differences in specific price forecasts, the consensus is that gold will reach new highs this year. 

Reasons for the Expected Rise:

• Central banks are actively increasing their gold reserves, creating strong demand. 

• Gold is seen as a safe-haven asset during periods of economic uncertainty and inflation, leading to increased demand. 

• A weaker US dollar can make gold cheaper for investors holding other currencies, further boosting demand. 

• These markets are also contributing to the increased demand for gold. 

Specific Price Forecasts:

• Goldman Sachs predicts gold will rise to $3,700 a troy ounce by the end of 2025 . 

• Citi has upgraded their 2025 average forecast to $2,900 per ounce . 

• UBS has revised their forecast to $3,500 . 

• Some analysts predict the average price could be around $3,154.82 by the end of the first half of the year and reach $3,925.39 by the end of the year, according to CoinCodex

Why Does This Matter?

• Nvidia’s financial reports offer a real-time look at how AI is shaping industries worldwide. Even though sales in China have dropped, demand for Nvidia’s products stays strong. This shows how important AI has become for business growth, cloud services, and national security.

• The surge in building AI data centers marks a big shift in where value comes from in today’s economy. The companies that own these data centers have a major say in the direction of AI and the broader digital market.

What Could Happen Next? 

• Nvidia’s future in China is still uncertain. If tensions between the U.S. and China rise, Nvidia may lose even more ground in the Chinese market. Still, strong demand from Western buyers could help the company stay ahead, unless wider export bans take effect.

• Tariffs could soon face a major legal test. If the Supreme Court rules against the current policy, the administration will need new ways to protect American industries. This could create swings in markets tied to China, especially for chipmakers and car companies.

• China’s limits on rare-earth exports could spark U.S. action. The U.S. might respond with extra duties, making technology and clean energy materials more expensive. This could push companies to speed up supply chain changes and invest more in U.S. mining projects.

• The rush to build AI data centers continues, with nearly 100 new sites coming online. Some experts warn that this could lead to too much capacity if demand slows down. 

• For now, though, investment in AI shows no sign of cooling, keeping the race for infrastructure hot.

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See you next week,
The Global Hustlr Team

This is for informational purposes only and should not be interpreted as specific investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation. While the information is believed to be accurate, it is not guaranteed and is subject to change without notice.