Nvidia Shows Strong Growth Despite Export Restrictions to China: Nvidia announced strong financial results
that exceeded analysts’ expectations for the first quarter of its fiscal year 2026.
The performance was driven by robust demand for AI chips, especially in the data center segment,
which recorded a 73% year-over-year surge. As a result, the company’s stock rose by about 3% in after-hours trading.
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Adjusted earnings per share reached $0.96, surpassing the estimated $0.93,
while revenue was $44.06 billion, compared to expectations of $43.31 billion.
Despite a positive revenue forecast of $45 billion for the current quarter,
it came below analysts’ estimates of $45.9 billion.
Nvidia attributed this to sales losses stemming from U.S. export restrictions on H20 chips to China,
which led to a $4.5 billion inventory surplus and $2.5 billion in potential lost sales.
The company’s gross margin stood at 61% during the quarter
and could have reached 71.3% if not for costs related to these restrictions.
The data center division, which represents 88% of Nvidia’s total sales,
reported a $39.1 billion revenue driven by rising demand
for AI chips in applications like large language models and recommendation engines.
Networking sales reached $5 billion, a key component in connecting AI chips.
In terms of net income, Nvidia posted $18.8 billion, or $0.76 per share,
up from $14.9 billion, or $0.60 per share a year ago—a 26% increase.
The report highlighted that it spent $14.1 billion on stock buybacks
During the quarter, it paid out $244 million in dividends to shareholders.
Nvidia Shows Strong Growth Despite Export Restrictions to China