Core Viewpoint - Nvidia reported earnings that exceeded market expectations despite facing significant challenges from US export controls, which are projected to cost the company about $8 billion in the current quarter [3][4][8]. Financial Performance - Nvidia incurred a charge of $4.5 billion in the recent quarter due to excess inventory and purchase obligations related to its H20 chips, which are now restricted from being sold in China [7][8]. - The company's revenue for the quarter was $44.1 billion, with a profit of $18.8 billion, leading to a more than four percent increase in share price in after-market trading [8]. - Revenue from Nvidia's data center division reached $39.1 billion, marking a 10% increase year-over-year, although this was below market expectations [10]. Market Dynamics - The new US licensing requirements have effectively closed the $50 billion AI market in China to Nvidia, as the company cannot further reduce the capabilities of its H20 chips to comply with export constraints [5][6]. - Nvidia's gaming chip business achieved a record revenue of $3.8 billion, a 48% increase, driven by the ongoing AI boom [11]. Competitive Landscape - Nvidia faces increasing competitive pressure from rivals like AMD, as well as geopolitical challenges that may impact AI chip demand in future quarters [11][12]. - The CEO of Nvidia, Jensen Huang, emphasized that while China is advancing in AI independently, the question remains whether the market will operate on American platforms [6][7]. Technological Advancements - Nvidia's new Blackwell NVL72 AI supercomputer, described as a "thinking machine," is now in full production, indicating strong ongoing demand for the company's AI technology [9].

Core Viewpoint - Nvidia reported strong first-quarter earnings, exceeding analysts' expectations, but projected lower second-quarter sales due to tightening export controls to China affecting its AI chips [1][2]. Financial Performance - First-quarter net income increased by 26% year-over-year, reaching nearly $19 billion, while revenue rose to $44 billion, marking a 69% increase from the previous year [2]. - Revenue from data centers was $39 billion in the first quarter, up 10% from the previous quarter and 73% from the same period last year [3]. Strategic Developments - Nvidia is investing in U.S. factories and collaborating with partners to produce AI supercomputers domestically [3][4]. - The company’s CEO highlighted the launch of the Blackwell NVL72 AI supercomputer, which is now in full-scale production [3]. Market Demand - Global demand for Nvidia's AI infrastructure is described as incredibly strong, with AI inference token generation increasing tenfold in just one year [6]. - The CEO emphasized that AI is becoming essential infrastructure, akin to electricity and the internet, positioning Nvidia at the center of this transformation [6]. Export Challenges - Nvidia was informed by the U.S. government on April 9 that it would require a license to export its H20 products to China, leading to a charge of several billion dollars in the first quarter [7][10]. - The company incurred a $4.5 billion charge related to excess inventory and purchase obligations due to diminished demand for H20 products [10]. - Nvidia anticipates missing $8 billion in sales in the second quarter due to these export restrictions [10].

Core Insights - Nvidia reported first-quarter revenue of $44.1 billion, a 69% increase year-over-year and a 12% increase from the previous quarter, surpassing the consensus estimate of $43.2 billion [1] - The company faced a $4.5 billion charge related to H20 excess inventory and purchase obligations due to an export ban on H20 products to China, impacting earnings per share [2] - Nvidia's guidance for second-quarter revenue is $45.0 billion, accounting for an $8.0 billion loss in H20 revenue due to export controls [4] Financial Performance - First-quarter earnings per share were reported at 81 cents, missing the consensus estimate of 88 cents [1] - Adjusted quarterly earnings per share would have been 96 cents without the $4.5 billion charge [2] Segment Performance - Data Center segment revenue reached $39.1 billion, up 73% year-over-year and 10% quarter-over-quarter [4] - Gaming & AI PC segment revenue was $3.8 billion, reflecting a 42% year-over-year increase and a 48% quarter-over-quarter increase [4] - Professional Visualization segment revenue was $509 million, up 19% year-over-year, while Automotive segment revenue was $567 million, up 72% year-over-year [4] Future Outlook - The company is guiding for gross margins between 71.8% and 72.0% for the second quarter [5] - CEO Jensen Huang emphasized strong demand for Nvidia's AI infrastructure, highlighting a tenfold increase in AI inference token generation over the past year [5] Stock Performance - Nvidia's stock rose 2.7% to $138.25 in after-hours trading, within a 52-week trading range of $86.63 to $153.13 [5]

Core Viewpoint - NVIDIA reported strong financial results for the first quarter of fiscal 2026, with significant revenue growth despite challenges related to export licensing for its H20 products to China [1][2][4]. Financial Performance - Revenue for Q1 FY26 was $44.1 billion, representing a 12% increase from the previous quarter and a 69% increase year-over-year [1][6]. - Data Center revenue reached $39.1 billion, up 10% from Q4 FY25 and up 73% from Q1 FY25 [9]. - GAAP gross margin was 60.5%, down from 73.0% in Q4 FY25 and 78.4% in Q1 FY25, while non-GAAP gross margin was 61.0% [3][6]. - The company incurred a $4.5 billion charge related to H20 excess inventory and purchase obligations due to new export licensing requirements [2][6]. - Net income for Q1 FY26 was $18.775 billion, a decrease of 15% from Q4 FY25 but an increase of 26% year-over-year [6][16]. Earnings Per Share - GAAP diluted earnings per share (EPS) was $0.76, down 15% from the previous quarter but up 27% year-over-year [3][6]. - Non-GAAP diluted EPS was $0.81, down 9% from Q4 FY25 but up 33% year-over-year; excluding the H20 charge, it would have been $0.96 [3][6][26]. Strategic Developments - NVIDIA's CEO highlighted the strong global demand for AI infrastructure, emphasizing the company's pivotal role in the AI transformation [4]. - The company announced plans to build factories in the U.S. and collaborate with partners to produce AI supercomputers domestically [14]. - NVIDIA introduced several new products and partnerships aimed at enhancing AI capabilities, including the NVIDIA Blackwell Ultra and partnerships for AI factories in Saudi Arabia and the UAE [14]. Outlook - For Q2 FY26, NVIDIA expects revenue of approximately $45.0 billion, reflecting a loss of about $8.0 billion in H20 revenue due to export control limitations [14]. - The company anticipates GAAP and non-GAAP gross margins of 71.8% and 72.0%, respectively, for the upcoming quarter [14][28].