NVIDIA reports $44B Q1 revenue—beats expectations amid China export restrictions
What's the story
NVIDIA has once again surpassed Wall Street's expectations in its latest quarterly earnings report.
The chip-making giant reported a revenue of $44.1 billion for the quarter ending in April, a whopping 69% increase from last year.
The company's data center revenue also saw a massive jump of 73% to $39.1 billion.
NVIDIA beat investor estimates of $43.3 billion for the total revenue by nearly $1 billion.
Earnings report
NVIDIA's adjusted earnings per share fall short of expectations
Despite the impressive revenue figures, NVIDIA's adjusted earnings per share fell short of investor expectations.
The company reported an adjusted EPS of $0.81 for the quarter, lower than the expected $0.88.
This was primarily due to a $4.5 billion charge related to US export controls on AI chip sales to China, which contributed to the lower-than-expected earnings in Q1 2025.
Future projections
NVIDIA anticipates $8 billion hit from reduced China sales
Looking ahead, NVIDIA has projected its second-quarter revenue to be around $45 billion, in line with market expectations.
This forecast includes an estimated $8 billion hit from reduced China sales, much higher than the $2.5 billion impact in Q1 2025.
The company also expects a total charge of about $5.5 billion due to excess inventory and purchase obligations associated with H20 products, with $4.6 billion already accounted for in the first quarter.
Market response
NVIDIA's CEO comments on global demand for AI infrastructure
NVIDIA's CEO Jensen Huang commented on the strong global demand for the company's AI infrastructure.
He said, "Countries around the world are recognizing AI as essential infrastructure - just like electricity and the internet - and NVIDIA stands at the center of this profound transformation."
Despite facing challenges from US export controls and rising competition from AMD, NVIDIA managed to deliver a robust quarter amid industry consolidation.
Stock outlook
NVIDIA's stock performance and future plans
NVIDIA's strong performance in Q1 2025 has lifted investor sentiment, with shares jumping over 4% in after-hours trading.
The company's stock closed at $134.81 on Wednesday, just below its pre-Trump inauguration level.
To mitigate future trade risks and align with US interests, NVIDIA plans to increase domestic manufacturing by producing AI chips and supercomputers in Arizona and Texas.