Nvidia Earnings: AI Giant Delivers Another Quarterly Sales Record Despite China Speed Bump

Core Viewpoint - Nvidia reported record-setting sales amid the AI boom, but experienced unusually weak bottom line growth due to new regulations affecting its China dealings [1][4]. Financial Performance - Nvidia's revenue for the quarter ending April 27 reached $44.1 billion, exceeding Wall Street forecasts of $43.3 billion, representing a year-over-year growth of 69% [2]. - The company reported adjusted diluted earnings per share of $0.83 and net income of $19.9 billion, surpassing projections of $0.73 and $18.3 billion respectively, with an annual EPS increase of 33% [3]. - The gross margin for the last quarter was 61%, the weakest since 2022, but is expected to recover to nearly 75% by year-end according to Bank of America [6]. Market Impact - Nvidia's shares increased by 3% to $138 following the quarterly results [2]. - The company anticipates a revenue loss of $8 billion during the summer quarter due to new export controls on its H20 AI chips to China [5]. Industry Position - Nvidia holds a dominant 75% market share in the AI accelerator market, making it a key player in the generative AI sector [7]. - The company's market capitalization stands at $3.3 trillion, second only to Microsoft's $3.4 trillion [7]. Historical Context - Since the release of ChatGPT in November 2022, Nvidia's stock has surged by 700%, significantly outperforming the S&P benchmark [8].