Nvidia sales exceed expectations despite tariff uncertainty

Nvidia has reported a stellar first quarter, significantly surpassing revenue and profit forecasts, driven by an “incredibly strong” global demand for its artificial intelligence (AI) infrastructure.

The company’s stock surged by approximately 6% in extended trading following the announcement, reaching its highest point in four months.

For the quarter, Nvidia posted adjusted earnings per share of 96 cents on revenue of $44.06 billion, exceeding analyst expectations of 93 cents and $43.31 billion respectively.

This impressive performance saw revenue climb 69% from $26 billion a year earlier. The cornerstone of this growth was the data centre business, which includes AI chips and related components, experiencing a remarkable 73% year-over-year growth to reach $39.1 billion, accounting for 88% of total revenue.

Nvidia CEO Jensen Huang (pictured above, centre) underscored the driving force behind these figures, stating: “Global demand for Nvidia’s AI infrastructure is incredibly strong,” and anticipating that demand for AI computing would “accelerate.” He further added: “Countries around the world are recognizing AI as essential infrastructure, just like electricity and the internet — and Nvidia stands at the centre of this profound transformation.”

Despite this success, Nvidia continues to navigate a complex geopolitical landscape, particularly concerning US export restrictions on advanced computing chips to China.

The company incurred a $4.5 billion charge related to excess inventory for its China-specific “H20” chips, which now require an export license. Huang noted that the $50 billion market for AI chips in China is “effectively closed to U.S. industry” due to the “H20 export ban,” which “ended our Hopper data centre business in China.”

To counter these challenges, Nvidia plans to increase manufacturing in the United States. Beyond data centres, Nvidia’s gaming division saw a 42% annual growth to $3.8 billion, while its automotive and robotics division reported a 72% increase in sales to $567 million, driven by demand for self-driving car chips and software.

The professional visualization business also grew by 19% to $509 million. These results underscore Nvidia’s dominant position in the AI sector, even as it adapts to an evolving global trade environment.