Nvidia reported a significant increase in revenue in the first quarter, with sales of its chips rising over 69% compared to the same period last year. The company’s sophisticated chips have played a key role in the artificial intelligence (AI) boom.
However, Nvidia’s stock and fellow chip-makers’ shares plummeted in April after US President Donald Trump announced tariffs and tightened export restrictions. Analysts say the strong earnings report has “eased concerns” about tariffs, which are still uncertain due to a federal court blocking them.
Nvidia reported $18.8 billion in quarterly profits, with its AI infrastructure seeing strong global demand. The company’s CEO, Jensen Huang, expressed confidence in demand for AI computing and expected it to accelerate.
In April, Washington restricted the sale of Nvidia’s China-specific “H20” chips, leading to a drop in demand. However, the company incurred a $4.5 billion charge due to this impact, which was initially forecasted at $5.5 billion.
Analysts praise Nvidia’s earnings and guidance as a positive result for the tech world, despite the ongoing tariff uncertainty. The company plans to increase manufacturing in the US to address supply chain complexities and costs.
Nvidia has also benefited from new buyers among governments in the Gulf states, with sales in its key data centre business growing 73% on an annual basis. Despite geopolitical challenges, the company remains at the center of the AI transformation, with CEO Jensen Huang stating that countries recognize AI as essential infrastructure like electricity and the internet.
As the tech industry navigates complex landscape of challenges, Nvidia’s strong earnings have boosted confidence in the market. The company’s future success will depend on its ability to navigate these challenges and maintain its dominant position in the AI market.
Source: https://www.bbc.com/news/articles/c1j59dry4dpo