Nvidia shares pop on strong AI demand despite hit from China chip restrictions

Core Insights - Nvidia reported strong demand for its AI chips and solid first-quarter results, easing investor concerns about the tech industry [1] - The company expects revenue of about $45 billion in the fiscal second quarter, impacted by$8 billion in expected sales losses due to export controls on H20 chips to China [2][8] - Despite challenges, Nvidia's stock rose 4% in after-hours trading following better-than-expected earnings [3] Financial Performance - Nvidia reported earnings of 96 cents per share on sales of $44.06 billion for the quarter ending in April, with revenue up 69$1 billion less than expected, totaling $4.5 billion on excess inventory [4][6] - The data center business saw a significant increase, with proceeds jumping 73$39.1 billion [6] Market Position and Demand - Nvidia is positioned at the forefront of the AI boom, with major companies like Google, Microsoft, Meta, Amazon, and OpenAI relying on its chips for AI tools [7] - CEO Jensen Huang emphasized that global demand for Nvidia's AI infrastructure is "incredibly strong," with AI inference token generation surging tenfold in one year [4][10] - Major tech firms are expected to spend a combined $345 billion this year on AI initiatives, indicating robust market growth [9]