Nvidia Reports Over $44 Billion in Revenue Despite Restrictions on Sales to China
Nvidia Surges 6% Following Quarter of Strong Growth Despite Trade Tension
Nvidia's shares soared in after-hours trading on Wednesday, following the tech company's release of impressive financial results for the first quarter. The company, a major player in the chip and artificial intelligence market, reported a 69% year-over-year increase in revenue, reaching nearly $44.1 billion.
This robust growth, however, came amid turbulent trade conditions. President Trump's erratic trade tariff saga has caused fluctuations in the stocks and share prices of tech firms, including Nvidia, that are relying on artificial intelligence to boost their revenue.
In the lead-up to the earnings announcement, Nvidia's share price was at the same level as at the start of 2025. This was before the escalation of trade-related issues when Trump took office.
Despite the positive revenue figures, Nvidia fell marginally short of market expectations. The diminished performance can be partly attributed to the Trump administration's efforts to tighten regulations on tech exports to China. In response, the company reported a $45 billion write-down on unsold chips destined for the Chinese market, resulting in a loss of approximately $2.5 billion in additional sales.
In terms of segment highlights, the data center arm, which is the driving force behind Nvidia's AI-focused initiatives, contributed $39.1 billion in revenue during the quarter—an increase of 73% year-over-year. The data center division makes up 88% of the company's total turnover. Meanwhile, revenue from the networking segment reached $5 billion and sales from the gaming segment rose by 42% to $3.8 billion.
Nvidia's CEO, Jensen Huang, expressed optimism in the face of these challenging conditions, stating that "global demand for Nvidia's AI infrastructure is incredibly strong." He pointed out that the company's flagship 'backwell' system, in particular, was experiencing strong sales.
During a conversation with US analysts, Huang commended Trump's decision to rescind an export rule that was imposed by Joe Biden. However, he noted concerns about the possibility of a replacement rule that may impose new restrictions on Nvidia's products or operations.
When commenting on recent export curbs imposed by the Trump administration in April, Huang criticized the measures that prevented the company from selling its H20 chip made for the Chinese market, which he referred to as "a springboard to global success." On the other hand, he praised some of Trump's actions, stating that they benefit America by creating jobs, advancing infrastructure, generating tax revenue, and reducing the US trade deficit.
Despite the challenges posed by trade restrictions, analysts remain optimistic about Nvidia's future prospects. Josh Gilbert, a market analyst at eToro, expressed confidence that the company will continue to thrive, stating that "Nvidia has reminded markets why it is the cornerstone of the AI revolution with another solid result and upbeat forecast."
Investing in Nvidia's stocks could prove profitable given the company's significant growth in the finance sector, particularly in the technology and artificial intelligence markets. Despite the impact of trade tensions on the company's revenue and share prices, Nvidia's strong performance in the data center segment, which contributes largely to its total turnover, suggests a bright future for this business.
