Nvidia’s (NVDA) first-quarter revenue rose to a record high, topping analysts’ expectations, but earnings missed as the chipmaker took a hit from new export curbs.
Nvidia reported adjusted earnings of 81 cents per share on revenue that jumped 69% year-over-year to a record $44.06 billion. The gains came as sales from Nvidia’s data center segment, representing the bulk of the company’s revenue, grew 73% to a record $39.1 billion. (Investopedia’s live coverage of the results is here.)
“Global demand for NVIDIA’s AI infrastructure is incredibly strong,” CEO Jensen Huang said in a release, adding “AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate.”
Nvidia’s quarterly sales exceeded analysts’ estimates compiled by Visible Alpha, but earnings did not, as the company said it absorbed a $4.5 billion charge in the period due to restrictions on the sale of its H20 chips to China, less than the $5.5 billion the company said it anticipated last month. Without the charge and related tax impact, Nvidia said it would have reported EPS of 96 cents, above estimates.
In the current quarter, Nvidia said it expects to take an $8 billion hit due to lost revenue from H20 sales. The chipmaker projected quarterly revenue of $45 billion, plus or minus 2%, and slightly below Street expectations.
Shares of Nvidia surged over 5% to just above $141 in after-hours trading following the results, its highest level since February. If Nvidia can sustain those gains, it could surpass Microsoft (MSFT) tomorrow as the world’s most valuable company by market capitalization.
This article has been updated since it was first published to include additional information and reflect more recent share price values.
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