Nvidia, the AI and graphics chip company driving societal changes with AI, reported revenue for the first quarter ended April 27, 2025, was $44.1 billion, up 12% from the previous quarter and up 69% from a year ago.
On April 9, 2025, the U.S. government told Nvidia that a license is required for exports of its H20 products into the China market. As a result of these new requirements, Nvidia incurred a $4.5 billion charge in the first quarter of fiscal 2026 associated with H20 excess inventory and purchase obligations as the demand for H20 diminished. In after-hours trading, Nvidia’s stock is up 4.4%.
Sales of H20 products were $4.6 billion for the first quarter of fiscal 2026 prior to the new export licensing requirements. Nvidia was unable to ship an additional $2.5 billion of H20 revenue in the first quarter. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%.
For the quarter, GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been 96 cents. Analysts expected net income of 75 cents a share on Q1 revenue of $43.2 billion.
“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers,” said Jensen Huang, founder and CEO of Nvidia, in a statement. “Global demand for Nvidia’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. 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.”
Nvidia shareholders got a scare when DeepSeek emerged. Back on January 27, Nvidia’s stock fell 17%, losing $600 billion in market value, after investors worried that DeepSeek’s efficient AI models might reduce the demand for Nvidia’s high-margin AI hardware. But the stock has recovered since that time.
Nvidia downplayed the concerns and during the quarter announced a number of new products during the Computex trade show in Taiwan last week.
In its outlook for the second quarter, Nvidia said it expects revenues to be $45 billion, plus or minus 2%. This reflects a loss in H20 revenue of $8 billion due to the export control limitations.
GAAP and non-GAAP gross margins are expected to be 71.8% and 72.0%, respectively, plus or minus 50 basis points. The company is continuing to work toward achieving gross margins in the mid-70% range late this year.
GAAP and non-GAAP operating expenses are expected to be approximately $5.7 billion and $4.0 billion, respectively. Full year fiscal 2026 operating expense growth is expected to be in the mid-30% range.
Data Center revenues
First-quarter revenue was $39.1 billion, up 10% from the previous quarter and up 73% from a year ago.
Nvidia announced it is building factories in the U.S. and working with its partners to produce Nvidia AI supercomputers in the U.S.
It also introduced Nvidia Blackwell Ultra and Nvidia Dynamo for accelerating and scaling AI reasoning models. And it announced a partnership with HUMAIN to build AI factories in the Kingdom of Saudi Arabia to drive the next wave of artificial intelligence development.
Also in the Middle East, it unveiled Stargate UAE, a next-generation AI infrastructure cluster in Abu Dhabi, United Arab Emirates, alongside strategic partners G42, OpenAI, Oracle, SoftBank Group and Cisco.
The company said it plans to work with Foxconn and the Taiwan government to build an AI factory supercomputer. It also announced joint initiatives with Alphabet and Google to advance agentic AI solutions, robotics and drug discovery.
And it revealed that Nvidia Blackwell cloud instances are now available on AWS, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure.
Gaming and AI PC
First-quarter gaming revenue was a record $3.8 billion, up 48% from the previous quarter and up 42% from a year ago.
Nvidia also announced the GeForce RTX 5070 and RTX 5060, bringing Blackwell graphics to gamers at prices starting from $299 for desktops and $1,099 for laptops.
“Strong adoption by gamers have made Blackwell fastest ramp ever,” said Colette Kress, CFO of Nvidia, in an analyst call. “Improved supply and availability in Q1” helped Blackwell take off and she said Nvidia expects to continue that progress in Q2. She noted GeForce has a footprint of 100 million users, and AI PC models are able to run Microsoft’s Copilot+ AI technology.
And the company said Nvidia DLSS 4 is now available in over 125 games, including Black Myth Wukong, DOOM: The Dark Ages, Indiana Jones and the Great Circle, Marvel Rivals and Star Wars Outlaws.
It also noted the Nintendo Switch 2, which is launching on June 5, is powered by an Nvidia processor and AI-powered DLSS, delivering up to 4K gaming. Nvidia said this offers a “giant leap” in gaming consoles today.
And it launched the Nvidia RTX Remix modding platform, attracting over two million gamers, alongside the release of the Half-Life 2 RTX demo.
Professional Visualization
First-quarter revenue was $509 million, flat with the previous quarter and up 19% from a year ago.
Announced the Nvidia RTX PRO Blackwell series for workstations and servers.
The company unveiled Nvidia DGX Spark and DGX Station personal AI supercomputers powered by the Nvidia Grace Blackwell platform.
Nvidia announced that leading industrial software and service providers Accenture, Ansys, Databricks, SAP, Schneider Electric with ETAP, and Siemens are integrating the Nvidia Omniverse platform into their solutions to accelerate industrial digitalization with physical AI.
Automotive and Robotics
First-quarter Automotive revenue was $567 million, down 1% from the previous quarter and up 72% from a year ago.
The company announced a collaboration with General Motors on next-generation vehicles, factories and robots using Nvidia Omniverse, Nvidia Cosmos and Nvidia Drive AGX.
It also announced Nvidia Isaac GR00T N1, the world’s first open humanoid robot foundation model, followed by Nvidia Isaac GR00T N1.5; Nvidia Isaac GR00T-Dreams, a blueprint for generating synthetic motion data; and Nvidia Blackwell systems to accelerate humanoid robot development.
