Nvidia Earnings Announced: Record-Breaking Profits Push the Nvidia Stock 6%

Nvidia earnings blew past estimates with a hulking report. Revenue for Q1 came in hot at $44.1 billion, up 69% from last year and ahead of the $43 billion consensus estimate. The artificial intelligence titan had taken center stage yesterday to announce its Q1 earnings. Nvidia shared its financial results for the quarter ending last month, and experts had expected overwhelming sales numbers amid the AI boom. 

A weak bottom line was expected due to Trump’s tariffs on China and the resulting lost business, which is estimated to account for $10 billion in missed revenue. 

The three-month period for which Nvidia posted earnings ends on April 27. Many Wall Street analysts expected Nvidia earnings to reach around $43.3 billion in revenue, which would represent year-over-year top-line growth of a robust 66%. 

Due to extensive export restrictions and tariff implementations, the previously approved H20 chips for China now need an export license. Nvidia already incurred almost $5 billion in charges related to excess inventory of the H20 chip and could have achieved $2.5 billion more in sales if the chip hadn’t been restricted. A gross margin of 61% would have been 71.3% if it hadn’t been for these new export policies to China. 

Despite political tensions, Nvidia earnings prove that the company continues to grow extensively, and global demand for Nvidia’s AI chips remains strong. Nvidia shares are just 5% below the all-time high and are at their highest level in 4 months. 

Did Nvidia Beat its Earnings from Last Year?

Last quarter’s Nvidia earnings were around $39.3 billion, and the latest quarter has surpassed that record and the expectations. With such excellent results, the Nvidia stock price improved 6% in extended trading. 

Earnings per share were 96 cents, a 33% jump year over year. Despite regulatory pressure and supply chain troubles, operating margins improved, proving that the company is agile and efficient. The company’s booming data center business showed year-over-year growth of 73% and accounted for 88% of total revenue. 

Nvidia earnings for the current quarter are expected to surpass $45 billion, according to the company, and estimates for Q3 exceed $45.9 billion. These numbers would have been $8 billion higher if it were not for the lost sales from the export restriction of its China-bound Nvidia H20 chips. 

The company’s gaming division, which supplies chips for playing 3D games, experienced a 42% growth. Nvidia was primarily the manufacturer of gaming chips before its semiconductors became essential for AI. Nvidia still makes the processor for the latest Nintendo Switch 2 console. 

Nvidia’s earnings from its automotive and robotics division saw a 72% growth, with most of that growth attributed to self-driving cars. 

Conclusion

The latest Nvidia earnings report highlights its dominance in the AI chip market and resilience in the face of geopolitical and regulatory headwinds. Smashing both revenue and EPS estimates, the company achieved record-breaking profits, growing 69% year-over-year, despite facing billions in lost revenue due to export restrictions to China. 

Strong demand in the data center, gaming, and automotive sectors paints a bullish picture for Nvidia’s growth trajectory. With expectations already topping $45 billion for the next quarter, Nvidia continues to demonstrate why it’s a cornerstone of the AI revolution. If political hurdles ease, the chipmaker could soar even higher, potentially breaking its all-time high stock price in the coming months.

About the Author: Sarah Zimmerman is a seasoned crypto and Web3 news writer passionate about uncovering the latest developments in the digital asset space. With years of hands-on experience covering blockchain innovations, cryptocurrency trends, and decentralized technologies, she strives to deliver insightful and balanced news that empowers her readers. Her work is dedicated to demystifying complex topics and keeping you informed about the ever-evolving world of technology.