Nvidia reported strong demand for its AI chips and solid first-quarter results on Wednesday, providing some relief to anxious investors who’ve come to see the world’s leading chip supplier as a bellwether for the general tech industry.
The Jensen Huang-led company reported earnings of 96 cents per share on sales of $44.06 billion for the quarter ending in April. Each numbers got here in higher than Wall Street’s expectations, with revenue up 69% in comparison with one yr ago. based on data compiled by LSEG.
Nevertheless, President Trump’s move to slap fresh export controls on Nvidia’s shipments to China weighed on its guidance. Nvidia expects revenue of about $45 billion within the fiscal second quarter – with a lack of $8 billion in expected sales of H20 chips that might have been shipped to China.
Nonetheless, the stock jumped 4% in after-hours trading following the better-than-expected earnings, which were released after the closing bell.
The restrictions on the sale of Nvidia’s H20 chips to China, the one AI processors it could legally export to the country, prompted Nvidia to reveal in April that it expected a $5.5 billion charge — temporarily sending the markets right into a tailspin.
On Wednesday, Nvidia said the actual first-quarter charge as a result of the H20 restrictions was $1 billion lower than expected since it was in a position to reuse some materials.
Huang put a positive spin on the outcomes and described demand for Nvidia’s AI infrastructure as “incredibly strong.”
“Global demand for Nvidia’s AI infrastructure is incredibly strong,” Huang said in an announcement. “AI inference token generation has surged tenfold in only one yr, and as AI agents develop into mainstream, the demand for AI computing will speed up.”
“Countries world wide are recognizing AI as essential infrastructure — identical to electricity and the web — and Nvidia stands at the middle of this profound transformation,” Huang added.
Nvidia said it took a $4.5 billion charge on excess H20 inventory in the primary quarter. The corporate said it will have sold $2.5 billion in additional chips if not for the restrictions.
Nvidia’s data center business was a vibrant spot for the quarter, with proceeds jumping 73% to $39.1 billion.
Nvidia is on the forefront of the present AI boom, with Google, Microsoft, Meta, Amazon, OpenAI and Elon Musk’s xAI among the many firms that depend on its chips to power the increasingly complex large language models that underpin their AI tools.
Microsoft, Amazon, Meta and Google alone are expected to spend a combined $345 billion this yr as they pour resources into the AI race, based on Visible Alpha estimates.
Nvidia reported strong demand for its AI chips and solid first-quarter results on Wednesday, providing some relief to anxious investors who’ve come to see the world’s leading chip supplier as a bellwether for the general tech industry.
The Jensen Huang-led company reported earnings of 96 cents per share on sales of $44.06 billion for the quarter ending in April. Each numbers got here in higher than Wall Street’s expectations, with revenue up 69% in comparison with one yr ago. based on data compiled by LSEG.
Nevertheless, President Trump’s move to slap fresh export controls on Nvidia’s shipments to China weighed on its guidance. Nvidia expects revenue of about $45 billion within the fiscal second quarter – with a lack of $8 billion in expected sales of H20 chips that might have been shipped to China.
Nonetheless, the stock jumped 4% in after-hours trading following the better-than-expected earnings, which were released after the closing bell.
The restrictions on the sale of Nvidia’s H20 chips to China, the one AI processors it could legally export to the country, prompted Nvidia to reveal in April that it expected a $5.5 billion charge — temporarily sending the markets right into a tailspin.
On Wednesday, Nvidia said the actual first-quarter charge as a result of the H20 restrictions was $1 billion lower than expected since it was in a position to reuse some materials.
Huang put a positive spin on the outcomes and described demand for Nvidia’s AI infrastructure as “incredibly strong.”
“Global demand for Nvidia’s AI infrastructure is incredibly strong,” Huang said in an announcement. “AI inference token generation has surged tenfold in only one yr, and as AI agents develop into mainstream, the demand for AI computing will speed up.”
“Countries world wide are recognizing AI as essential infrastructure — identical to electricity and the web — and Nvidia stands at the middle of this profound transformation,” Huang added.
Nvidia said it took a $4.5 billion charge on excess H20 inventory in the primary quarter. The corporate said it will have sold $2.5 billion in additional chips if not for the restrictions.
Nvidia’s data center business was a vibrant spot for the quarter, with proceeds jumping 73% to $39.1 billion.
Nvidia is on the forefront of the present AI boom, with Google, Microsoft, Meta, Amazon, OpenAI and Elon Musk’s xAI among the many firms that depend on its chips to power the increasingly complex large language models that underpin their AI tools.
Microsoft, Amazon, Meta and Google alone are expected to spend a combined $345 billion this yr as they pour resources into the AI race, based on Visible Alpha estimates.
