Are you a client?
Sign in to view the full news archive.
NVIDIA shares were up nearly 5% in after-hours trading on another strong quarter with revenue of $44.1bn, up 69% YoY, though the headline numbers mask some worrying regulatory headwinds. The company's data centre business continues to drive growth, generating $39.1bn in revenue with 73% annual growth.
However, it’s not all good news, the quarter was materially impacted by new US export licensing requirements for H20 products to China, announced back in April. This has resulted in a significant $4.5bn inventory charge and prevented an additional $2.5bn in revenue recognition. Without these restrictions, NVIDIA's performance would have been materially stronger, with gross margins reaching 71.3% versus the reported 61.0%.
The company's outlook remains cautiously optimistic, projecting Q2 revenue of $45.0bn despite an anticipated $8.0bn headwind from continued China restrictions. Management expects gross margins to recover to the mid-70% range by year-end as the H20 impact normalises.
NVIDIA's diversification is showing promise, with Gaming revenue hitting a record $3.8bn and the launch of consumer Blackwell GPUs. The Blackwell platform's production ramp and 30x performance improvements in MLPerf benchmarks shows the company's technological leadership, though geopolitical risks remain a key issue for some investors.
Posted by: Marc Hardwick at 09:10
Tags:
results