Nvidia Corporation reported mixed first-quarter results, outperforming revenue and earnings expectations but acknowledging significant challenges related to U.S. export controls affecting its China operations. The chipmaker posted revenue of $44.1 billion for the quarter ending April 27, exceeding analyst estimates of $43.3 billion. This represents a substantial increase from the $26 billion reported during the same quarter last year.
Adjusted earnings per share stood at $0.96, above the expected $0.93 and up from $0.61 a year earlier. Nvidia’s data center division, its largest business segment, generated $39.1 billion in revenue. While this fell slightly short of the projected $39.2 billion, it was still a notable jump from the $22.5 billion recorded in the corresponding quarter of 2024.
Despite these strong figures, the company projected an $8 billion revenue impact in the second quarter due to tightened U.S. export regulations. These rules, aimed at restricting advanced chip sales to China, have particularly affected Nvidia’s high-performance Hopper graphics processing units. The company had previously developed H20 chips to comply with the restrictions but has now acknowledged that further adjustments are not feasible.
Nvidia CEO Jensen Huang said the China market, worth an estimated $50 billion, is effectively closed to U.S. chipmakers under current regulations. He confirmed that Nvidia’s Hopper-based business in China has ended and noted that the company is exploring limited alternatives, although no viable replacements are currently in development.
Huang added that the share of Nvidia’s revenue from China dropped to 12.5% in the first quarter, down from roughly 14% and 15% in the preceding two quarters. He emphasized that while the company remains committed to innovation, its ability to serve the Chinese market is now significantly constrained.
The earnings call also highlighted the continuing strength of Nvidia’s relationships with major cloud and tech providers, including Microsoft, Amazon, and Meta Platforms, which are investing heavily in AI infrastructure. These partnerships continue to drive demand for Nvidia’s chips, helping offset losses in markets affected by regulatory barriers.
Following the earnings release, Nvidia shares rose more than 4% in after-hours trading. While geopolitical risks remain a concern, the company’s performance signals ongoing momentum in AI-driven data center growth and sustained investor confidence in its strategic direction. – By MENA Newswire News Desk.