Key Takeaways
Nvidia Corp. reported a record $81.6 billion in first-quarter revenue, an 85 percent annual surge, but its shares slipped after its second-quarter forecast, while strong, failed to satisfy the market's most optimistic expectations for the AI chipmaker.
"The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed," CEO Jensen Huang said in a statement released with the earnings. "Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries."
The results once again topped analyst expectations across the board, with Data Center revenue continuing to drive growth. The company also announced an $80 billion stock buyback and a dividend increase to $0.25 per share.
Despite the strong performance, the stock fell 1.7 percent in overnight trading. Investors weighed the better-than-expected Q2 guidance of approximately $91.0 billion against a complete withdrawal from the once-lucrative China market, a development that directly benefits local rivals.
The record results arrived even as Nvidia's business in China has been decimated by U.S. government export restrictions. In an interview Wednesday, Huang said Nvidia has "largely conceded" the market to competitor Huawei, which he noted is having a record year.
U.S. policies have blocked Nvidia from selling its most advanced chips, like the A100, H100, and new Blackwell series, to Chinese firms. Weaker, compliant chips developed for the market, such as the H20, saw limited uptake as Beijing discouraged their use. The company's revenue from China, which accounted for about 20 percent of sales in fiscal 2023, has continued to decline.
The guidance raise signals management expects AI demand outside of China to more than compensate for the lost sales. Investors will watch the Q2 earnings call in August for updated segment margins and commentary on the Blackwell chip adoption cycle.
This article is for informational purposes only and does not constitute investment advice.
