“Global demand for Nvidia’s AI infrastructure is incredibly strong,” said the company’s chief executive Jensen Huang in a press release.
Mr Huang said on Wednesday he expected demand for AI computing to “accelerate”.
Last week, Mr Huang criticised the US rules blocking exports of advanced computing chips to China.
Mr Huang blasted the policies as a “failure” and said they were backfiring against American companies.
Earlier this month, Mr Huang travelled with President Trump to the Middle East where the company said it would sell hundreds of thousands of its AI chips in Saudi Arabia.
Sales of Nvidia’s chips increased by over 69 percent in the first quarter of this year compared to the same period in 2024, giving the company a significant boost in revenue.
An important factor in the growth of artificial intelligence (AI) has been the US company’s advanced chips.
However, following US President Donald Trump’s announcement of a slew of tariffs and tightened export restrictions in April, Nvidia’s stock and the share prices of other chipmakers fell precipitously.
Its impressive set of outcomes, according to analysts, has “eased concerns” about tariffs, whose future is uncertain after a federal court blocked them.
After exceeding Wall Street forecasts, Nvidia’s stock price increased by over 5% during Thursday morning’s pre-market trading.
Russ Mould, investment director at AJ Bell, stated, “This company’s ability to continue generating significant growth is very impressive, despite all the hype surrounding it.”.
The company’s “bullish outlook” had contributed to a wider lift for international financial markets, he continued, when combined with the tariff decision from the US trade court.
A US trade court has blocked Trump’s broad tariffs. Now what?
“There is a tremendous demand for Nvidia’s AI infrastructure around the world,” stated Jensen Huang, the company’s CEO, in a press statement.
He went on to say he anticipated an “acceleration” in demand for AI computing.
Demand declined when Washington limited the sale of Nvidia’s “H20” chips, which are made in China, in April.
As a result, Nvidia reported incurring a $4.05 billion charge. But Nvidia’s original estimate of the business impact was much higher, at $52.5 billion.
On Wednesday, Mr. Huang stated that he anticipated the demand for AI computing to “accelerate.”.
The company’s earnings and guidance were described by analyst Dan Ives as “a very positive result for Nvidia and the tech world after a Twilight Zone tariff battle.”.
In devices designed for artificial intelligence (AI) computing, the US company’s advanced chips have been essential.
As tech companies’ shares have soared in recent weeks, Nvidia was the last big company to report during a robust earnings season.
The company’s forecast also included changes in international trade policies.
The company stated that new tariffs and export restrictions have made its supply chain more complicated and expensive and could do so in the future.
Nvidia stated that it intended to address the problem by expanding its production in the US.
The United States’ regulations preventing the export of sophisticated computer chips to China were criticized by Mr. Huang of last week.
The controls were implemented in response to worries that businesses loyal to China’s communist party might use chip technology that could be used for military purposes.
According to Mr. Huang, the policies were a “failure” and were hurting American businesses.
In the meantime, President Trump ordered US chip software suppliers to cease selling their goods to Chinese chip companies, according to a Financial Times report on Wednesday.
According to the report, the action is meant to make it more challenging for China to produce cutting-edge chips that could rival those of Nvidia.
“The export restrictions from China highlight the immediate pressure from geopolitical headwinds,” Jacob Bourne, an analyst at Emarketer, said.
In order to maintain its dominant position, Nvidia would have to manage “an increasingly complex landscape of geopolitical, competitive, and economic challenges,” he continued.
In the meantime, Nvidia has profited from the rise of new purchasers among Gulf state governments.
When President Trump visited the Middle East earlier this month with Mr. Huang, the company announced that it would sell hundreds of thousands of its AI chips in Saudi Arabia.
After the earnings announcement, Mr. Huang wrote, “Nvidia stands at the center of this profound transformation as countries around the world recognize AI as essential infrastructure — just like electricity and the internet —.”.
On an annual basis, sales in Nvidia’s core data center business increased by 73%.
Liv McMahon provided additional reporting.
