Chip designer Nvidia reported that revenues grew in the first quarter of the year, rising more than 69% from a year ago. Profits also rose.
“Global demand for NVIDIA’s AI infrastructure is incredibly strong,” chief executive, Jensen Huang said in a press release on Wednesday, adding that he expects demand for AI computing to “accelerate”.
The US company’s sophisticated chips have played a central role in equipment made for artificial intelligence (AI) computing.
Nvidia was the last major tech firm to report during a strong earnings season for tech companies whose shares have surged in recent weeks.
Tech stocks, including Nvidia, had previously plummeted in April amid uncertainty over US President Trump’s tariff policies.
On Wednesday, Nvidia said it had incurred a $4.5bn charge during the quarter as demand for its China-specific “H20” products waned.
Nvidia’s initial forecast for that charge was significantly higher – at $5.5bn – a month ago.
Washington restricted the sale of those chips, which are difficult to sell outside of China, in April.
Changes in global trade policies loomed large in the company’s forecast.
New export controls and tariffs have increased the complexity and cost of its supply chain, and may continue to do so, the company said.
Nvidia said it planned to increase manufacturing in the United States to strengthen the company’s supply chain.
Last week, Mr Huang criticised the US rules blocking exports of advanced computing chips to China.
The controls were put in place following concerns that chip technology with potential military uses could be deployed by companies loyal to China’s communist party.
Mr Huang blasted the policies as a “failure” and said they were backfiring against American companies.
Meanwhile, the Financial Times reported Wednesday that President Trump was ordering US chip software suppliers to stop selling their products to Chinese chip companies.
The move is intended to make it more difficult for China to develop its own advanced chips that would compete with Nvidia’s.
“The China export restrictions underscore the immediate pressure from geopolitical headwinds,” according to Emarketer analyst Jacob Bourne.
Sustaining dominance would require Nvidia to navigate “an increasingly complex landscape of geopolitical, competitive, and economic challenges,” Bourne added.
At the same time, Nvidia has benefitted from the emergence of new buyers among governments in the Gulf states.
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.
“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,” Mr Huang wrote after the earnings announcement.
Sales in Nvidia’s key data centre business grew 73% on an annual basis.
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