Nvidia reported better-than-expected earnings and revenue on Wednesday, driven by its booming data center business. The company’s data center division recorded year-over-year growth of 73%, with sales reaching $39.1 billion. This segment accounted for 88% of total revenue.
Revenue grew 69% compared to the same period last year, with net income increasing 26% to $18.8 billion. Nvidia’s gross margin was 61%, but would have been higher if not for a China-related charge.
Despite a recent export restriction on its chips bound for China, Nvidia’s growth remains strong, driven by demand for its artificial intelligence (AI) chips. The company’s AI infrastructure is in high demand globally, with global demand showing “incredibly strong” growth.
Nvidia’s data center division saw significant sales growth, with large cloud providers accounting for nearly half of the revenue. Microsoft and other companies are deploying Nvidia’s GPUs and GB200 products, largely due to their partnership with OpenAI.
The gaming division grew 42% on an annual basis, while the automotive and robotics division reported a 72% increase in sales. The professional visualization business also saw growth, driven by chips for 3D design and newly released desktops for AI.
Nvidia spent $14.1 billion on share repurchases during the quarter and paid $244 million in dividends.
Source: https://www.cnbc.com/2025/05/28/nvidia-nvda-earnings-report-q1-2026.html