On 28th May 2025, NVIDIA has reported its financial results for the first quarter of fiscal year 2026, ending April 27, 2025. NVIDIA’s financial results showcased significant growth driven by AI demand, while also addressing challenges posed by U.S. export restrictions to China. Currently, NVIDIA makes up 11% of my US stock portfolio.
In Q1 FY2026, NVIDIA achieved a record revenue of $44.1 billion, marking a 12% increase from the previous quarter and a 69% rise year-over-year. This performance was primarily fuelled by the company’s data centre segment, which generated $39.1 billion, up 10% quarter-over-quarter and 73% year-over-year. The gaming division also saw a significant boost, with revenue reaching $3.8 billion, a 42% increase from the same period last year.
In April 2025, the U.S. government mandated licensing for exports of NVIDIA’s H20 AI chips to China. As a result, NVIDIA incurred a $4.5 billion charge related to unsold H20 chip inventory and was unable to ship $2.5 billion worth of these chips in Q1. Looking ahead, the company anticipates an $8 billion revenue loss in Q2 due to these ongoing export restrictions.
Despite geopolitical challenges, NVIDIA continues to invest in AI infrastructure and product innovation:
-
AI Infrastructure Expansion: The company is constructing AI factories in the U.S. and collaborating with partners to produce AI supercomputers domestically.
-
Global Partnerships: NVIDIA announced a partnership with HUMAIN to build AI factories in Saudi Arabia, aiming to drive the next wave of AI development.
-
Product Launches: Introduced NVIDIA Blackwell Ultra and NVIDIA Dynamo to accelerate and scale AI reasoning models.
CEO Jensen Huang emphasized the importance of AI infrastructure, stating, “Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the centre of this profound transformation.”
Following the earnings announcement, NVIDIA’s stock experienced a 4% increase in after-hours trading, reflecting investor confidence in the company’s growth trajectory despite geopolitical headwinds.
NVIDIA projects Q2 revenue of approximately $45 billion, indicating resilience in its core markets despite the anticipated $8 billion impact from export restrictions. The company expects gross margins to return to the mid-70% range later this year.
NVIDA Share Price
At this point of writing, NVIDIA share price hovers around $142. You can see the 4% jump based on the above 5-day chart on NVIDIA share price.
NVIDIA’s Q1 FY2026 results underscore its leadership in AI and data centre markets. While export restrictions present challenges, the company’s strategic investments and product innovations position it well for sustained growth.
For a detailed breakdown of NVIDIA’s financials, you can view the full press release here: NVIDIA Announces Financial Results for First Quarter Fiscal 2026 | NVIDIA Newsroom