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Nvidia weathers tariff uncertainty to see surge in revenues Nvidia weathers tariff uncertainty to see surge in revenues
(about 5 hours later)
Nvidia logo is seen in this illustration taken, January 27, 2025.Nvidia logo is seen in this illustration taken, January 27, 2025.
Nvidia reported a huge boost to its revenues in the first quarter of the year, with sales of its chips rising more than 69% compared to the same period in 2024.Nvidia reported a huge boost to its revenues in the first quarter of the year, with sales of its chips rising more than 69% compared to the same period in 2024.
The US company's sophisticated chips have played a central role in the artificial intelligence (AI) boom.The US company's sophisticated chips have played a central role in the artificial intelligence (AI) boom.
But Nvidia's stock, along with share prices of fellow chip-makers, plummeted in April after US President Donald Trump announced a wave of tariffs and tightened export restrictions.But Nvidia's stock, along with share prices of fellow chip-makers, plummeted in April after US President Donald Trump announced a wave of tariffs and tightened export restrictions.
Analysts say its strong set of results have "eased concerns" around tariffs - the future of which are uncertain after they were blocked by a federal court.Analysts say its strong set of results have "eased concerns" around tariffs - the future of which are uncertain after they were blocked by a federal court.
Nvidia's share price rose by more than 5% in pre-market trading on Thursday morning after it beat Wall Street expectations. Wall Street stocks rose in early trading Thursday after a US court blocked many of President Trump's tariffs and Nvidia earnings boosted confidence.
"For all the noise around Nvidia, its ability to continue churning out substantial growth is highly impressive," said AJ Bell investment director Russ Mould. Nvidia reported a mammoth $18.8bn (£13.9bn) in quarterly profits, and shares of the artificial intelligence leader climbed 6.4%.
He added that, taken with the tariff ruling by the US trade court, the company's "bullish outlook" had added to a broader lift for global financial markets.
US trade court blocks Trump's sweeping tariffs. What happens now?US trade court blocks Trump's sweeping tariffs. What happens now?
"Global demand for Nvidia's AI infrastructure is incredibly strong," said the company's chief executive Jensen Huang in a press release."Global demand for Nvidia's AI infrastructure is incredibly strong," said the company's chief executive Jensen Huang in a press release.
He added that he expected demand for AI computing to "accelerate".He added that he expected demand for AI computing to "accelerate".
In April, Washington restricted the sale of Nvidia's China-specific "H20" chips, which led to a drop in demand.In April, Washington restricted the sale of Nvidia's China-specific "H20" chips, which led to a drop in demand.
Nvidia said it had incurred a $4.5bn charge as a result. However, Nvidia's initial forecast for the impact on business was significantly higher - at $5.5bn. Nvidia said it had incurred a $4.5bn charge as a result - but its initial forecast for the impact on business was significantly higher at $5.5bn.
Mr Huang said on Wednesday he expected demand for AI computing to "accelerate".Mr Huang said on Wednesday he expected demand for AI computing to "accelerate".
Analyst Dan Ives said the company's earnings and guidance were "a very positive result for Nvidia and the tech world after a Twilight Zone tariff battle".Analyst Dan Ives said the company's earnings and guidance were "a very positive result for Nvidia and the tech world after a Twilight Zone tariff battle".
The US company's sophisticated chips have played a central role in equipment made for artificial intelligence (AI) computing.
Nvidia was the last major tech firm to report during a strong earnings season for tech companies whose shares have surged in recent weeks.Nvidia was the last major tech firm to report during a strong earnings season for tech companies whose shares have surged in recent weeks.
US plansUS plans
Changes in global trade policies also loomed large in the company's forecast.Changes in global trade policies also loomed large in the company's forecast.
New export controls and tariffs have increased the complexity and cost of its supply chain, and may continue to do so, the company said.New export controls and tariffs have increased the complexity and cost of its supply chain, and may continue to do so, the company said.
Nvidia said it planned to increase manufacturing in the United States to help tackle the issue.Nvidia said it planned to increase manufacturing in the United States to help tackle the issue.
Last week, Mr Huang criticised the US rules blocking exports of advanced computing chips to China.Last week, Mr Huang criticised the US rules blocking exports of advanced computing chips to China.
The controls were put in place following concerns that chip technology with potential military uses could be deployed by companies loyal to China's communist party.The controls were put in place following concerns that chip technology with potential military uses could be deployed by companies loyal to China's communist party.
Mr Huang blasted the policies as a "failure" and said they were backfiring against American companies.Mr Huang blasted the policies as a "failure" and said they were backfiring against American companies.
Meanwhile, the Financial Times reported Wednesday that President Trump was ordering US chip software suppliers to stop selling their products to Chinese chip companies. Meanwhile, the Financial Times reported on Wednesday that President Trump was ordering US chip software suppliers to stop selling their products to Chinese chip companies.
The move is intended to make it more difficult for China to develop its own advanced chips that would compete with Nvidia's, the paper said.The move is intended to make it more difficult for China to develop its own advanced chips that would compete with Nvidia's, the paper said.
"The China export restrictions underscore the immediate pressure from geopolitical headwinds," according to Emarketer analyst Jacob Bourne."The China export restrictions underscore the immediate pressure from geopolitical headwinds," according to Emarketer analyst Jacob Bourne.
Sustaining its dominant position would require Nvidia to navigate "an increasingly complex landscape of geopolitical, competitive, and economic challenges," he added.Sustaining its dominant position would require Nvidia to navigate "an increasingly complex landscape of geopolitical, competitive, and economic challenges," he added.
At the same time, Nvidia has benefitted from the emergence of new buyers among governments in the Gulf states.At the same time, Nvidia has benefitted from the emergence of new buyers among governments in the Gulf states.
Earlier this month, Mr Huang travelled with President Trump to the Middle East where the company said it would sell hundreds of thousands of its AI chips in Saudi Arabia.Earlier this month, Mr Huang travelled with President Trump to the Middle East where the company said it would sell hundreds of thousands of its AI chips in Saudi Arabia.
"Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation," Mr Huang wrote after the earnings announcement. "Countries around the world are recognizing AI as essential infrastructure - just like electricity and the internet - and Nvidia stands at the center of this profound transformation," Mr Huang wrote after the earnings announcement.
Sales in Nvidia's key data centre business grew 73% on an annual basis.Sales in Nvidia's key data centre business grew 73% on an annual basis.
Additional reporting by Liv McMahon Additional reporting by Liv McMahon and Graham Fraser
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