Nvidia reported stellar first-quarter results for fiscal 2026, with shares climbing nearly 5% in after-hours trading on Wednesday, May 28, 2025. The company posted $44.1 billion in revenue, a 69% year-on-year increase, surpassing market expectations despite an $8 billion revenue hit from U.S. export restrictions on chip sales to China.
Nvidia’s data centre segment led the charge, generating a record $39.1 billion, up 73% from last year. While this growth slowed from the prior quarter’s 93% surge, it aligned with analyst forecasts given regulatory challenges. Earnings per share reached $0.96, exceeding consensus estimates, as reported by Reuters.
CEO Jensen Huang attributed the success to soaring global demand for AI technologies. “AI inference token generation has surged tenfold in a year,” Huang said. “Countries view AI as critical infrastructure, and Nvidia is at the forefront.”
JUST IN: Nvidia $NVDA rises 5% after hours following earnings report. pic.twitter.com/dNDhlM0xgr
— Watcher.Guru (@WatcherGuru) May 28, 2025Navigating China Export Restrictions
U.S. export controls on Nvidia’s H20 chips led to $4.5 billion in inventory write-downs and an estimated $8 billion revenue loss. Without these charges, Nvidia’s gross margin would have hit 71.3%, but it stood at 61%. Huang noted that the $50 billion Chinese market is “effectively closed” to U.S. firms, requiring a multibillion-dollar inventory write-off.
Nvidia’s Blackwell AI chip is now in full production, powering hyperscale cloud platforms and system integrators. The company is also expanding globally, partnering with Saudi Arabia’s HUMAIN to build AI factories and supporting U.S. national AI initiatives under President Donald Trump.
$NVDA (Nvidia) #earnings are out: pic.twitter.com/EhDBSqpsNm
— The Earnings Correspondent (@earnings_guy) May 28, 2025Analyst Josh Gilbert from eToro Australia said, “The Middle East could be Nvidia’s next growth hub as China sales face restrictions.”
Nvidia forecasts $45 billion in revenue for the current quarter, with a non-GAAP gross margin of 72%, slightly below last year’s 73.5%. As the world’s most valuable public company, surpassing Microsoft and Apple, Nvidia’s stock trades just 8% below its January peak.
