Nvidia Reports Record Q1 Revenue

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Summary

  • Nvidia reported record-breaking revenue of $44.1 billion for Q1, up 12% from last quarter and 69% from last year.
  • Despite regulatory setbacks, Nvidia’s data center segment generated $39.1 billion, boosting long-term growth confidence.
  • CEO Jensen Huang anticipates a $45 billion revenue in Q2, highlighting strong AI momentum and global partnerships.

As a devoted admirer, I’m thrilled to share that as we step into the new fiscal year, Nvidia has made an impressive debut! The company reported exceptional Q1 revenue figures, which were finalized on April 27, 2025. Notably, this revenue marked a significant 12% rise from the previous quarter and a staggering 69% surge compared to the same period in the preceding year. Truly, it’s a testament to Nvidia’s relentless innovation and growth!

Worldwide, Nvidia is recognized for its pioneering work in high-speed computing and graphics processing units that have dominated gaming for decades. Since its establishment in 1993, the company has branched out into various fields such as artificial intelligence (AI), robotics, and autonomous vehicles. In October 2024, Nvidia surpassed Apple to claim the title of the most valuable company globally, boasting a market capitalization of $3.53 trillion. These recent financial reports suggest that NVIDIA continues to maintain its rapid growth trajectory.

In the first quarter of fiscal year 2026, Nvidia announced a revenue of approximately $44.1 billion. This represents an increase of 12% compared to the previous quarter and a significant jump of 69% compared to the same period the year before. The primary reason for this growth is the ongoing global demand for Nvidia’s AI and data center products, which are crucial in establishing AI infrastructure globally. However, the quarter wasn’t without its challenges. In April, new U.S. export regulations were implemented, requiring licenses for sending Nvidia’s H20 chips to China – a market-specific product line. As a result, Nvidia had to record a $4.5 billion charge due to excess H20 inventory and contractual obligations, and was unable to ship an additional $2.5 billion worth of these chips.

Nvidia’s Data Center Revenue Hits $39.1 Billion

Even with the regulatory hurdle faced, Nvidia’s financial performance demonstrated robustness. The H20 charge affected the margins, causing GAAP (standard accounting rules) and non-GAAP gross margins to settle at 60.5% and 61.0% respectively. However, if we exclude this charge, the non-GAAP gross margin would have been 71.3%, signifying that the core business remains robust. GAAP earnings per share were $0.76, while non-GAAP earnings were $0.81. After considering the impact of H20, the adjusted EPS was $0.96. The data center segment maintained its dominance, generating $39.1 billion, a 10% increase from Q4 and a 73% growth compared to the same period last year. This performance bolsters faith in the company’s future growth prospects.

In the future, Nvidia anticipates its second-quarter earnings to approximate $45 billion, considering a potential loss of approximately $8 billion from H20 revenue due to ongoing export restrictions. CEO Jensen Huang emphasized the robust growth in AI, stating that the Blackwell NVL72 AI supercomputer is now being mass-produced and experiencing significant demand from cloud service providers and system builders. With new AI collaborations in Asia and the Middle East, as well as ongoing efforts in robotics and gaming, Nvidia is aggressively expanding across all sectors. As Huang articulated, “Countries worldwide are recognizing AI as crucial infrastructure – comparable to electricity and the internet – and Nvidia is at the heart of this significant shift.

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2025-05-29 06:13