29 May 2025
If you are covering Nvidia’s Q1 trading update or Salesforce’s Q1 update, please find comments below from Ben Barringer, technology analyst at Quilter Cheviot:
Nvidia:
"Nvidia continues to show impressive growth, with revenues up 69% and a stock surge of 5% after hours.
“Despite an eight-percentage-point headwind from China, the company still managed a beat, showcasing resilience. The recent ban on its H20 product by the US government has added complexity, but component reuse has softened the financial impact.
“CEO Jensen Huang’s strong stance on China’s AI market highlights a potential opportunity for US companies to re-enter that space. Additionally, President Trump’s engagements in the Middle East, particularly with UAE and Saudi Arabia, could open new avenues for sovereign AI, potentially contributing around 20% of Nvidia’s revenues going forward.
“Demand from hyperscalers remains robust, fuelled by enterprise adoption of AI and applications like ChatGPT, which has surpassed 800 million weekly active users. With a projected 50% growth next quarter – despite a likely 10% China-related headwind – and recovering margins, Nvidia's product offering remains strong, and its valuation appears reasonable given the sustained AI demand."
Salesforce:
"Salesforce has delivered a strong quarter, with a market beat driven by growing demand for data products. Businesses are increasingly focused on getting their data in order to leverage AI, and early signs of demand for Salesforce’s Agentforce product indicate a promising trajectory.
“We see Salesforce as an AI winner, alongside companies like Microsoft, Intuit, SAP, and Palo Alto. These firms have sticky products, high-quality data sets, and the resources to deploy AI effectively, positioning them well for the future."
