Nvidia Q1 Revenue Soars 69%, Crushing Estimates
▼ Summary
– Nvidia reported Q1 2025 revenue of $44.1 billion, up 12% quarterly and 69% yearly, with a $4.5 billion charge due to H20 export restrictions to China.
– The company’s Blackwell NVL72 AI supercomputer is in full production, with strong global demand for AI infrastructure driving growth.
– Nvidia expects Q2 2026 revenue of $45 billion (±2%), despite an $8 billion loss from H20 export limitations, and aims for mid-70% gross margins later this year.
– Gaming revenue hit a record $3.8 billion, driven by new Blackwell GPUs like the RTX 5070 and 5060, and the Nintendo Switch 2 launch with Nvidia’s AI-powered DLSS.
– Nvidia expanded partnerships in AI, robotics, and automotive, including collaborations with GM, HUMAIN, and Middle Eastern entities, and unveiled Isaac GR00T for humanoid robot development.
Nvidia has reported staggering first-quarter earnings, with revenue skyrocketing 69% year-over-year to reach $44.1 billion. The semiconductor giant continues to dominate the AI hardware market despite facing export restrictions that impacted its China business.
The U.S. government’s new licensing requirements for H20 product exports to China forced Nvidia to take a $4.5 billion charge due to excess inventory. Before these restrictions, H20 sales had already generated $4.6 billion in revenue for the quarter. Without this charge, non-GAAP gross margins would have hit an impressive 71.3%, showcasing the company’s strong underlying profitability.
Jensen Huang, Nvidia’s founder and CEO, emphasized the company’s pivotal role in AI infrastructure, stating that demand for its Blackwell NVL72 AI supercomputer is surging globally. “AI is now seen as essential infrastructure, just like electricity and the internet,” Huang noted, highlighting the rapid adoption of AI inference and generative models.
Despite a brief stock dip earlier this year—triggered by concerns over DeepSeek’s efficient AI models—Nvidia’s shares have rebounded, climbing 4.4% in after-hours trading following the earnings release. The company also unveiled multiple new initiatives, including AI factories in Saudi Arabia and next-gen Blackwell Ultra processors, reinforcing its market leadership.
Looking ahead, Nvidia forecasts Q2 revenue of $45 billion (±2%), though export controls will erase $8 billion in potential H20 sales. Gross margins are expected to remain robust at around 72%, with the company targeting mid-70% margins by year-end.
Key Business Segment Highlights
Data Center: Revenue soared to $39.1 billion, up 73% year-over-year, driven by AI server demand. Nvidia is expanding production in the U.S. and collaborating with global partners, including Saudi Arabia’s HUMAIN and UAE’s G42, to build next-gen AI infrastructure.
Gaming: Record-breaking $3.8 billion in revenue, fueled by the launch of Blackwell-powered GeForce RTX 5070 and 5060 GPUs. The Nintendo Switch 2, launching June 5, will feature Nvidia’s AI-enhanced DLSS technology for 4K gaming.
Professional Visualization: Revenue reached $509 million, with new RTX PRO Blackwell workstations and DGX AI supercomputers strengthening Nvidia’s industrial and creative software ecosystem.
Automotive & Robotics: Despite a slight sequential dip, revenue surged 72% year-over-year to $567 million, supported by partnerships with GM and advancements in humanoid robotics via the Isaac GR00T platform.
With AI adoption accelerating worldwide, Nvidia remains at the forefront of the computing revolution, continuously expanding its influence across industries.
(Source: VentureBeat)
