(NASDAQ: NVDA), the world’s leading maker of AI semiconductors, blew past Wall Street expectations on Wednesday(May 29), reporting record-breaking revenue and data center sales that underscored the insatiable global demand for artificial intelligence infrastructure. Despite geopolitical headwinds and a hefty $4.5 billion charge tied to US export curbs on its H20 chips to China, the company reaffirmed its status as the bellwether of the AI boom.


The company reported fiscal Q1 revenue of $44.06 billion, up 69 percent year-over-year, crushing analyst expectations of $43.31 billion.

Earnings per share came in at $0.96 adjusted, beating the Street’s estimate of $0.93. Net income rose to $18.8 billion, or $0.76 per share, from $14.9 billion a year ago.

In extended trading, Nvidia shares surged over 6 percent, hitting levels last seen in February and positioning the stock to potentially overtake Microsoft as the most valuable publicly traded company by market capitalization.


Nvidia’s data center division, which includes AI chips and networking gear, posted a record $39.1 billion in sales, a 73 percent annual increase, and now accounts for a staggering 88 percent of the company’s total revenue. Microsoft alone has deployed “tens of thousands” of Nvidia’s Blackwell GPUs and is expected to scale to “hundreds of thousands,” according to CFO Colette Kress.CEO Jensen Huang called the demand for AI systems “incredibly strong,” noting that AI inference token generation has grown tenfold in just one year. “As AI agents become mainstream, the demand for AI computing will accelerate,” Huang told investors on the company’s earnings call.

Export curbs to China's blow

Despite the blockbuster quarter, Nvidia took a $4.5 billion inventory charge related to new U.S. restrictions on the export of its H20 chips to China. The company estimated it lost $2.5 billion in additional sales from the China market, which Huang said is now “effectively closed to U.S. industry.”

“The H20 export ban ended our Hopper data center business in China,” Huang said bluntly. He criticized U.S. policy assumptions, saying, “Shielding Chinese chipmakers from U.S. competition only strengthens them abroad and weakens America’s position.”

CFO Kress added that the curbs would likely have a “material adverse impact” going forward and benefit foreign competitors. Nvidia expects second-quarter revenue of around $45 billion, about $750 million shy of analyst estimates, largely due to the China-related setback.

Diversified strength across divisions

Nvidia’s gaming business, once its core, grew 42 percent year-over-year to $3.8 billion, driven by continued demand for high-end GPUs used in both gaming and AI development. The automotive and robotics division jumped 72 percent to $567 million, thanks to increased adoption of Nvidia’s chips in self-driving technologies.

Meanwhile, its professional visualization segment, which includes high-performance workstations for AI and 3D modeling, rose 19 percent to $509 million.

Reshoring and manufacturing commitments

Huang also threw his support behind President Trump’s reshoring initiative, emphasizing Nvidia’s investments in American manufacturing. He pointed to TSMC’s plans for multiple Arizona fabs and upcoming AI supercomputer facilities in Texas as part of Nvidia’s long-term commitment.

“The US will always be Nvidia's largest market and home to the largest installed base of our infrastructure,” Huang said.

Outlook and shareholder return

Despite regulatory headwinds, Nvidia remains confident in its long-term trajectory. It spent $14.1 billion on share buybacks and issued $244 million in dividends during the quarter. The company forecasts gross margins around 72 percent for the current quarter, aiming to reach the mid-70 percent range later this year.

Nvidia shareholders and AI investors will be watching closely when Huang delivers his keynote at GTC Paris on June 10–12, where he is expected to reveal developments in quantum GPU computing, robotics, and global AI partnerships.