Nvidia announced impressive first-quarter results on Wednesday, reporting a 69% year-over-year increase in revenue, reaching $44.1 billion, surpassing Wall Street’s forecast of $43.28 billion. However, the company’s net profit of $18.78 billion was slightly below the anticipated $19.49 billion.Earnings per share came in at 73 cents, an increase from 61 cents a year prior. Shares of the California-based chip manufacturer rose more than 4% in after-hours trading. Nvidia finished the regular trading session as the second-most valuable company in the world, trailing only Microsoft, with a market capitalization of $3.3 trillion.Nvidia’s stock climbed over 3% to $135.36 a day before the company was due to release its earnings report on Wednesday.Last year, the Biden administration’s export controls limited Nvidia’s ability to sell its advanced H20 AI chip in China, a market that accounted for 13% of the company’s revenue in 2024. Nvidia has warned that these restrictions could lead to $5.5 billion in charges, with CEO Jensen Huang estimating a $15 billion loss in potential sales. Analysts at Susquehanna estimated the curbs cost Nvidia about $1 billion in sales in the final three weeks of the April quarter. Wedbush analysts projected a quarterly hit between $3 billion and $4 billion. Gross margins were also expected to take a hit, forecasting an 11 percentage point drop to 67.7 per cent, partly due to write-downs related to H20 shipments, which could reduce margins by as much as 12.5 per cent.Now that Nvidia has released its financial results for the first quarter of 2026, all eyes will be on how the company navigates the twin challenges of regulatory restrictions in China and rising AI infrastructure costs. Analysts are watching closely to see whether Nvidia can extend its streak of beating Wall Street expectations for an eighth consecutive quarter.Despite Nvidia’s strong positioning, 2025 has been volatile for chipmakers. Nvidia’s share price has largely stalled after doubling in 2023.NVIDIA is set to distribute its upcoming quarterly cash dividend of $0.01 per share on July 3, 2025, to all shareholders registered as of June 11, 2025.
