Nvidia Corp (NASDAQ: NVDA) has impressed the market again with its latest earnings report.
Nvidia was the latest Magnificent 7 company to report. And, once again, expectations were set sky high leading into the result.
For the past three years, Nvidia has been considered the 'poster child' for the artificial intelligence revolution and has had a significant influence on the overall market. It's no surprise that Nvidia earnings announcements are so closely followed.
The chipmaker posted its Q1 earnings report this morning (after market close in the US). Nvidia's share price climbed 5% in aftermarket trade, despite a significant write-off.
Image source: Getty Images
Nvidia once again beats expectations
Nvidia posted quarterly revenue of US$44.1 billion, up 69% year-over-year and 12% from the prior quarter. Once again, this surpassed analyst expectations. According to Bloomberg (as reported by Yahoo Finance), analysts had expected revenue of US$43.3 billion. During this period last year, the company reported US$26 billion in revenue.
A record-setting performance from the data centre segment drove the result, with revenue skyrocketing 73% year-over-year to US$39.1 billion. This was driven by continuing demand for AI. This segment includes processors used for data centers, AI, and cloud computing.
However, the Trump Administration's export restrictions loomed over the result.
Last month, the chipmaker was notified by the US government that it will now require a special license to ship its H20 graphic processing units or related hardware to China. Nvidia's advanced Graphic Processing Units (GPUs) have already been banned for export to China. The H20 GPU had been specifically designed to comply with existing export rules enacted by the Biden Administration. Last year, the chips generated an estimated US$12 billion to US$15 billion in revenue.
Stricter licensing requirements hampered demand, causing Nvidia to take a US$4.5 billion charge for the quarter. However, it should be noted that this was below the US$5.5 billion initially estimated by the company.
Will Nvidia reach a new all-time high?
Nvidia's share price is approximately flat for the year to date, despite its rollercoaster journey this year.
In February, Nvidia's share price fell nearly 20% when Chinese startup company DeepSeek arrived on the scene.
In early April, Nvidia shares were further slammed as US President Donald Trump unveiled his reciprocal tariffs. This sent Nvidia's share price to a 6-month low of $87.
Later in the month, news broke that the chipmaker would face export controls, which sent the share price lower. Last week, at the Computex trade show in Taipei, Nvidia CEO Jensen Huang revealed that the Trump Administration's ban on its H20 chips had cost the company US$15 billion in sales.
However, things appear to be looking up for Nvidia shareholders generally. Since 21 April, the company has rallied more than 40% and is now around 10% below its all-time high of $153. Those who bought in the recent dip have been well rewarded.
Looking forward, Nvidia expects to deliver revenue of $45.0 billion in the second quarter.
The landscape certainly appears to be improving for Nvidia investors. A new all-time high could be on the horizon.
