Nvidia (NASDAQ:NVDA) delivered impressive financial results for the quarter ending April 27, surpassing analysts’ projections. The American tech giant reported revenues of $44.1 billion, exceeding the consensus estimate of $43.31 billion. This represents a 12% increase over the previous quarter and a remarkable 69% growth compared to the same period last year. Earnings per share also outpaced forecasts, coming in at $0.96 versus the expected $0.93.
The company’s data center segment generated $39.1 billion in revenue, reflecting increases of 10% quarter-over-quarter and 73% year-over-year, though this figure fell slightly short of analyst estimates of $39.3 billion, according to LSEG data.
Nvidia’s Gaming division hit a new record with $3.8 billion in revenue, marking a 48% jump from the prior quarter and a 42% rise compared to 2024. However, the Automotive segment faced challenges, posting $567 million in revenue—a 1% decline from the previous quarter, despite a robust 72% increase year-over-year.
Looking ahead, Nvidia announced a quarterly cash dividend of $0.01 per share, payable on July 3, 2025, to shareholders of record as of June 11, 2025.
The company highlighted a significant regulatory development: On April 9, it was informed by the U.S. government that exporting its H2O products to China now requires a license. This restriction led to a $4.5 billion charge in Q1 related to excess inventory and purchasing commitments amid reduced demand for H2O chips. Prior to these licensing rules, H2O sales totaled $4.6 billion, but Nvidia was unable to recognize an additional $2.5 billion in H2O revenue during the quarter.
Reported and adjusted gross margins stood at 60.5% and 61.0%, respectively. Excluding the $4.5 billion charge, adjusted gross margin for the quarter would have been 71.3%.
For Q2, Nvidia projects revenue of $45 billion, plus or minus 2%, factoring in an estimated $8 billion loss caused by ongoing export controls. The company expects reported and adjusted gross margins of 71.8% and 72%, respectively, within a 50 basis point margin, and aims to reach gross margins in the mid-70% range by year-end.
“Global demand for NVIDIA’s AI infrastructure is incredibly strong,” said Jensen Huang, Nvidia’s founder and CEO. “AI inference token generation increased tenfold in just one year, and as AI agents become more widespread, demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure, just like electricity and the Internet, and NVIDIA is at the center of this profound transformation.”
CFRA analyst Angelo Zino described Nvidia’s guidance as “pessimistic” but acknowledged it reflects the company’s expectation to lose $8 billion in revenue during the upcoming quarter due to export restrictions in China. Nevertheless, Zino noted that “Nvidia’s non-China business is performing significantly better than previously expected, supported by increased spending on hyperscalers in the US and increased demand for reasoning models for AI agents.”
Following the earnings release, Nvidia’s stock rose sharply in after-hours trading, gaining 5.65% to close at $142.42.
Wedbush analyst Daniel Ives commented that Nvidia’s results “are a very important signpost for the tech world at large and show that the AI revolution is entering its next phase of growth, despite Trump’s ongoing trade war.”
Echoing confidence tempered with caution, Edward Jones analyst Logan Purk stated, “While this quarter reinforces our long-term confidence in AI and Nvidia likely remains the best-positioned company to benefit from this trend, we believe the stock already reflects our optimism.”
Meanwhile, Emarketer analyst Jacob Bourne warned, “Concerns are trade tensions and the potential impact of tariffs on data center expansion that could create headwinds for AI chip demand in the coming quarters. This doesn’t signal the end of Nvidia’s dominance, but it does highlight that maintaining it will require navigating an increasingly complex landscape of geopolitical, competitive, and economic challenges.”