Thu May 29 08:50:00 UTC 2025: **Summary:**
Nvidia’s Q1 earnings beat revenue expectations but fell short on adjusted EPS due to the ban on H20 chip sales to China. The company anticipates an $8 billion sales hit in Q2 due to the ban. Despite this, Nvidia’s data center revenue surged, driven by hyperscalers. CEO Jensen Huang highlighted strong global demand for AI infrastructure. Export restrictions and potential semiconductor tariffs have caused stock fluctuations. New technologies and deals in the Middle East are boosting the stock. Nvidia is developing a modified H20 chip. Huang criticized US policies, claiming they benefit Chinese chipmakers.
**News Article:**
**Nvidia Earnings Mixed as China Chip Ban Bites, Stock Jumps 5%**
**SAN FRANCISCO (Yahoo Finance) -** Nvidia (NVDA) reported its first quarter earnings on Wednesday, revealing a mixed bag of results. While revenue surpassed expectations, adjusted earnings per share (EPS) fell short due to the impact of the U.S. ban on shipments of its H20 chips to China. The company projects an $8 billion revenue loss in the second quarter related to the ban.
Despite the setback, Nvidia’s stock jumped 5% in after-hours trading, signaling investor confidence in the company’s overall growth trajectory.
Nvidia reported EPS of $0.81 on revenue of $44.1 billion, compared to analysts’ estimates of $0.93 EPS on $43.3 billion revenue. Excluding the H20 chip impact, adjusted EPS would have reached $0.96. A year ago, the company reported adjusted EPS of $0.61 on revenue of $26 billion.
The company’s largest business segment, data centers, saw revenue surge to $39.1 billion, up from $22.5 billion year-over-year, but slightly below Wall Street expectations of $39.2 billion. Nvidia CFO Colette Kress noted that nearly 50% of data center revenue comes from hyperscalers like Amazon, Google, and Microsoft.
“Global demand for Nvidia’s AI infrastructure is incredibly strong,” said CEO Jensen Huang in a statement. He emphasized the essential role of AI, comparing it to electricity and the internet, and positioning Nvidia at the center of this transformation.
The ban on H20 chip sales to China resulted in a $4.5 billion write-down for Nvidia. Morgan Stanley analyst Joseph Moore highlighted that the lost H20 revenue cannot be offset by increased production of other chips like Blackwell.
Nvidia is reportedly working on a modified version of the H20 chip to meet U.S. regulations. Huang criticized U.S. policies for benefiting Chinese AI chipmakers. The company also secured deals in the Middle East, including providing GPUs to Saudi Arabia’s Humain and building a second Project Stargate in the United Arab Emirates.
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