Nvidia posts $81.62B quarter

Nvidia reported record first-quarter revenue of $81.62 billion on May 20 and told investors to expect about $91 billion in sales in the current quarter, extending a run of results driven by demand for artificial intelligence chips. The Santa Clara, California, company said revenue for the quarter ended April 26 rose 85% from a year earlier, while data center sales climbed to $75.2 billion. (investor.nvidia.com) Nvidia also announced an additional $80 billion share repurchase authorization and raised its quarterly dividend to 25 cents a share from 1 cent. Shares fell in extended trading after the report, even as the company topped Wall Street estimates. ### How big was the quarter Nvidia just posted? (investor.nvidia.com) Nvidia said first-quarter revenue rose to $81.62 billion from $44.1 billion a year earlier, beating analyst expectations compiled by LSEG. Adjusted earnings per share came in at $1.87, above consensus estimates cited by market trackers. The company described the period as another record quarter for both total revenue and data center sales. Data center revenue of $75.2 billion accounted for the vast majority of Nvidia’s business in the quarter. Nvidia said that segment was up 92% from a year earlier, and CNBC reported the gain came as cloud companies and other customers continued spending heavily on AI infrastructure. (investor.nvidia.com) ### What did Nvidia say about the next quarter? Nvidia forecast second-quarter revenue of $91 billion, plus or minus 2%, above analysts’ estimates of $86.84 billion cited by Reuters. The company said the outlook reflected continued demand for AI computing systems and newer data-center products. (investor.nvidia.com) Jensen Huang, Nvidia’s chief executive, told investors demand was no longer concentrated in only a handful of large cloud providers. Reuters reported Huang said the customer base was broadening and that new products would help sustain growth as more companies and countries build AI infrastructure. (investor.nvidia.com) ### Why did China come up so quickly on the call? Nvidia said its outlook assumes no data-center compute revenue from China. That disclosure followed U.S. export restrictions that have limited the company’s ability to sell advanced AI chips into the Chinese market. (money.usnews.com) Reuters reported analysts focused on those restrictions even as Nvidia delivered a strong forecast. The issue has become a central question for investors because China had been an important market for Nvidia’s data-center business before tighter controls on advanced chip exports. (money.usnews.com) ### If the numbers were so strong, why did the stock slip? Nvidia shares fell after the results despite the revenue beat and the stronger-than-expected outlook. Reuters reported the decline reflected investor concern that export limits and tougher competition could weigh on future growth, while CNBC said the market reaction showed some investors wanted even more from a company that has repeatedly exceeded expectations. (money.usnews.com) The $80 billion buyback and dividend increase signaled confidence from management, but they did not erase questions about how much of Nvidia’s recent pace can continue under tighter China restrictions. That reading was reflected in analyst commentary cited by Reuters and in the immediate after-hours move in the stock. (money.usnews.com) ### What are investors watching next? The quarter ended on April 26, and Nvidia’s next test is whether it can deliver the roughly $91 billion in second-quarter revenue it projected. Investors are also likely to focus on updates from Huang and finance chief Colette Kress about customer concentration, rollout of newer AI systems, and the effect of U.S. export controls on China-related sales. (money.usnews.com) Nvidia’s fiscal second-quarter results will provide the next formal update, following the company’s May 20 earnings release and conference call. Until then, the main markers are the company’s stated guidance, its assumption of no China data-center compute revenue, and whether spending by hyperscalers and other AI buyers remains at current levels. (investor.nvidia.com)