The US tech giant Nvidia, which makes advanced artificial intelligence (AI) computer chips, has shared its financial results for the first three months of its 2026 fiscal year, which ended on April 27, 2025. The company has made $44.1 billion in sales. This amount represents a 12% increase from the previous three months and a 69% increase from the same period last year.
The revenue beat what experts at Zacks predicted, which was $42.91 billion, by about 2.7%. However, Nvidia’s profit per share was 81%, slightly less than the 85% that was expected by the experts. The firm’s total profit was $18.8 billion, which is 26% more than the previous year.
The company’s profits were lower than its expectations because it had to set aside $4.5 billion due to U.S. government rules that blocked the sale of the firm’s powerful H20 AI chips to China. Nvidia’s CEO, Jensen Huang, said that the demand for their AI technology is very strong worldwide, comparing it to essential services like electricity and the internet, which everyone needs.
As per the reports, the firm expects to earn about $45 billion in sales for the next three months, but it predicts losing $8 billion of that because the U.S. government has restricted sales of its high-powered H20 AI chips to China. To work around this, Nvidia is creating a new, cheaper AI chip for the Chinese market and plans to start making it in large quantities in June 2025.
Nvidia’s data center segment drove the bulk of its revenue, contributing $39.1 billion, a 10% rise from the previous quarter. Despite the earnings miss, investor confidence remained strong, with Nvidia’s stock (NVDA) climbing 4.89% to $141.40 in after-hours trading on May 28, after closing down 0.51% at $134.81.
While Nvidia deals with restrictions on selling chips to China, other U.S. tech giants are focusing more on artificial intelligence (AI). Microsoft is building two new AI research centers in Abu Dhabi to advance its AI technology.
At the same time, some companies that used to focus on Bitcoin mining are now using their equipment to help run powerful AI programs, like those that understand and generate human-like text. This highlights that many companies are shifting their efforts to build and support AI technology.
Also Read: Fact Check: Is NVIDIA Adding Bitcoin to Its Balance Sheet?
