Amid the turmoil, Nvidia still maintained its breakneck growth as the leading provider of the computer chips used for building AI.
Nvidia said Wednesday that sales in its most recent quarter rose 69% from a year earlier to $44.1 billion. Its net income rose 26% to $18.78 billion. The company exceeded Wall Street’s expectations for sales of $43.28 billion, but fell short of predictions for a profit of $19.49 billion.
Nvidia’s revenue and profit rose even though, it said Wednesday, the Trump administration’s restrictions on chips to China would cost it $4.5 billion, $1 billion less than it estimated in mid-April. The restrictions have pushed Nvidia out of the market for AI chips in China, the world’s largest buyer of semiconductors, which are used to power smartphones, cars and other electronics.
Nvidia also projected that revenue in the current quarter would rise 50% from a year ago to $45 billion, as it expands sales of its newest AI chip. .
Shares in Nvidia rose more than 4% in after-hours trading. It finished the trading day as the second-most-valuable company in the world behind Microsoft and ahead of Apple, with a market value of $3.3 trillion.
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“Every nation now sees AI as core to the next industrial revolution,” Jensen Huang, Nvidia’s CEO, said during a call with analysts Wednesday. The company is showing its strength, even among the tech industry’s largest companies. For the first time in the AI era, its quarterly sales surpassed those of Meta, the social media pioneer. Nvidia’s net income was 13% larger than Meta’s profit in their most recent quarters.
