Nvidia reports strong Q1 earnings despite new China export controls on AI chips

The giant NVIDIA Technology has informed its profits in the first quarter on Wednesday, overcoming the expectations of analysts, although its sales in the second quarter are estimated at the export controls to China, which cover some artificial intelligence chips.

NVIDIA, a leading company in artificial intelligence space (AI), has seen 3 % rising in post -hours trading after the announcement. The profit report showed that net income in the first quarter increased by 26 % from last year at about 19 billion dollars, as revenues rose to 44 billion dollars, an increase of 69 % over last year.

The company’s revenues from data centers reached $ 39 billion in the first quarter – an increase of 10 % over the previous quarter and 73 % over last year. NVIDIA also builds factories in the United States and works to produce giant computers from artificial intelligence in the United States with its partners.

“Our excellent computer from Blackwell Nvl72 AI-is a” thinking machine “designed for thinking-is now working in full production through system makers and cloud services providers.”

AI Chipmaker Nvidia to invest billions

“The global demand for NVIDIA AI’s infrastructure is incredibly strong. The AI’s distinctive symbol for AI has increased in just one year, and while artificial intelligence agents have become prevalent, the demand for computing from artificial intelligence will accelerate.”

“Countries around the world recognize Amnesty International as an essential infrastructure – just like electricity and the Internet – and Nvidia stands in the midst of this deep shift,” added Huang.

The release of profits in NVIDIA indicated that on April 9, the US government informed the company that it would request a license to export H20 products to China, causing the company to bear fees worth several billion dollars per quarter.

How NVIDIA became the Chipmaker King, from the maximum Denny’s market to $ 2.3T

In recent years, the United States has imposed increasingly strict export controls on China, which apply to the most advanced artificial intelligence chips, as a way to reject access to advanced technology in a competitive economy sector.

NVIDIA is located in Santa Clara, California. (Photographer: Lauren Elliot / Bloomberg via Getti Imhasers / Getty Pictures)

The company said: “As a result of these new requirements, NVIDIA incurred a fee of $ 4.5 billion in the first quarter of the fiscal year 2026 linked to the inventory obligations and extra purchase H20 while reducing the demand for H20.”

“H20 products sales amounted to $ 4.6 billion for the first quarter of 2026 before the new export license requirements. NVIDIA was not able to charge $ 2.5 billion of H20 revenues in the first quarter.”

Get Fox Business on the Go by clicking here

NVIDIA added that it expects to miss sales of $ 8 billion in the second quarter due to export restrictions.

Reuters contributed to this report.