Nvidia pops as Q1 results, guidance top expectations, despite China controls
May 28, 2025 4:40 PM ET
By: Chris Ciaccia, SA News Editor
Nvidia (NASDAQ: NVDA) shares rose 3% in extended trading on Wednesday after the Jensen Huang-led company reported fiscal first-quarter results and guidance that topped expectations, despite the impact of added export control curbs to China.
For the period ending April 27, the Jensen Huang-led company earned $0.81 per share on an adjusted basis. At the same time, revenue surged 69% year-over-year to come in at $44.06B.
“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers,” said Huang in a statement. “Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”
Data center revenue jumped 73% year-over-year, coming in at $39.1B. Automotive and robotics revenue for the period clocked in at $567M, up 72% year-over-year. Professional visualization revenue rose 19% year-over-year to $509M. Gaming revenue for the period was $3.8B, up 42% year-over-year and 48% sequentially.
Nvidia said it lost an additional $2.5B in H20 revenue during the period, relating to the export control curbs.
Adjusted gross margin came in at 60.5% for the quarter, including the loss of $4.6B in H20-related revenue. Including the $4.5B charge, adjusted gross margin would have been 71.3%, Nvidia said.
Analysts were expecting the company to earn an adjusted $0.75 per share on $43.25B in revenue during the period.
“NVDA earnings appeared to show some unexpected benefit from new exporting controls in the form of reduced expectations,” Julian Lin, Investing Group Leader for Best Of Breed Growth Stocks, said in an email. “It also appears that the stock has found some valuation support as the stock has grown into its valuation (it is notably flat over the past year). The days of hyper-growth might be ending (10% QoQ growth implies forward top-line growth is likely to decelerate to the 20% to 30% range in the next year) but the stock is looking like a GARP-pick given the recent underperformance.”
Looking to the second-quarter of fiscal 2026, Nvidia expects to generate $45B in revenue, plus or minus 2%. This includes a loss of approximately $8B in H20-related revenue. Analysts were forecasting $45.92B in revenue.
Shares of other semiconductor companies, including AMD ( AMD), ARM ( ARM), ASML ( ASML), Taiwan Semiconductor ( TSM) and Intel ( INTC) moved slightly higher in after-hours trading following the results and guidance. Super Micro Computer ( SMCI) also rose following Nvidia's results.
In conjunction with the results, Nvidia said it would pay its quarterly dividend of $0.01 per share to shareholders on July 3, to all shareholders of record on June 11, 2025.
The company will hold a conference call at 5 p.m. EST to discuss the results. |
