Nvidia quarterly revenue surges nearly 70% on AI boom

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NVIDIA reported a 70 percent increase in quarterly revenue, as the boom continued to spend on artificial intelligence chips despite the export controls that led to Chip Company sales.

On Wednesday, NVIDIA recorded revenues of $ 44.1 billion for a quarter to 27 April, an increase of 69 percent year on year and above Wall Street’s expectations of $ 43.3 billion.

But the American chips designer in the heart of a global spending spook over the infrastructure that operates artificial intelligence is that it expects revenues of $ 45 billion for the current quarter, in addition to or minus 2 percent, which means that it may come a little less than the estimates of the Bloomberg consensus amounting to 45.5 billion dollars.

The CEO of Nvidia Jensen Huang said the company was witnessing an “incredibly strong” request for its products.

The company is moving on the impact of US president Donald Trump’s war with China, as well as new export restrictions in April, which prevented it from selling artificial intelligence chips specifically designed for the China market. The group received a fee of $ 4.5 billion per quarter in April as a result of those restrictions, and said it had already missed an additional $ 2.5 billion. Its guidance for the current period reflects a $ 8 billion loss of revenue in lost sales to China.

NVIDIA shares increased by about 4 percent in the hours after trading hours immediately after the announcement.

Net income jumped by 26 percent to $ 18.8 billion, just less than $ 19.5 billion.

The modified total margins – a scale for profitability that excludes operating expenses and April 4.5 billion dollars – 71.3 percent, was in line with 71 percent. The company said was expecting in its last profit report in February and Wall Street was expected.

The total margin expectations of the company for the current quarter were slightly higher than 72 percent, compared to 71.7 percent expected by analysts.

NVIDIA’s margins declined earlier this year with the company’s martyrdom of the move to the most complex and higher Chip systems, which were launched last year. NVIDIA and its suppliers recently solved technical problems with Blackwell servers that threatened to delay the show.

Before the results, analysts warned that new China sales restrictions will provide more margins than this quarter.

The company is considering how to redesign its chips to serve the Chinese market with compliance with the latest US export controls.