May 28 (UPI) — Nvidia officials reported first-quarter earnings that exceeded projections with $44.1 billion in revenue, which is 69% higher than a year ago.
The earnings are 12% higher than the last quarter of 2024 and produced GAAP and non-GAAP gross margins of 60.5% and 61%, respectively, Nvidia said Wednesday evening in a news release. GAAP is a setting of accounting rules used by publicly traded companies.
The gross margins account for a $4.5 billion charge for exporting its H2O chip to China and would have been 71.3% for non-GAAP goods, Nvidia reported.
Earnings were 76 cents for GAAP and 81 cents for non-GAAP diluted shares.
The Trump administration on April 9 notified Nvidia that it is requiring the chipmaker to obtain an export license for its H2O chip that is designed specifically for use in China’s market.
The chip is a specially designed version of Nvidia’s popular Hopper AI chips and is intended to comply with U.S. trade restrictions.
Nvidia at center of ‘profound transformation’
Wednesday’s earnings report reflects strong demand for Nvidia products, founder and Chief Executive Officer Jensen Huang said.
“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning — is now in full-scale production,” Huang said.
He described global demand for Nvidia’s AI infrastructure as “incredibly strong.”
“AI inference token generation has surged tenfold in just one year,” Huang explained. “As AI agents become more mainstream, the demand for AI computing will accelerate.”
He said nations around the world recognize AI is an essential part of their critical infrastructure, and “Nvidia stands at the center of this profound transformation.”
Analysts anticipated earnings
The artificial intelligence firm was expected to show increased earnings from a year ago, when it posted adjusted earnings of 61 cents per share on $26.04 billion in sales during the quarter that ended on April 27, Investor’s Business Daily reported.
Analysts queried by FactSet anticipated Nvidia would report adjusted earnings of 73 cents per share and $43.34 billion in sales during the first quarter this year.
Others suggested the AI chipmaker would report 93 cents in adjusted earnings per share on $43.31 billion in sales, CNBC reported.
Analysts anticipate Nvidia will post improved numbers during the second quarter with projected adjusted earnings of 99 cents per share and nearly $46 billion in sales.
The Nvidia earnings report also comes on the heels of the Federal Reserve’s recent announcement that it is maintaining the Fed’s lending rate of 4.25% to 4.5%.
The Federal Reserve’s Open Market Committee met earlier in the month and agreed that President Donald Trump’s tariffs policy and other inflationary pressures could trigger a rise in inflation.
Meanwhile, the Dow closed down more than 200 points at the end of trading on Wednesday.
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