The major US chipmaker NVIDIA reported $44.1 billion in revenue for the first quarter of the current fiscal year, a 69% increase over the same period last year due to the company’s data center business’s booming demand.
At $39.1 billion, the data center segment’s revenue—which includes networking equipment and AI chips—rose 73% year over year to account for more than 88% of the company’s overall revenues.
The US government informed the company in April that imports of its H20 AI-accelerator equipment to China would need an export license. As a result of the consequent decline in demand, the company reported that it had to write down excess H20 inventories and pay for purchase commitments, costing $4.5 billion in the quarter.
Despite the limitations, NVIDIA made $4.6 billion in sales of H20 products in the first quarter of fiscal 2026, before export licensing laws were put into place. However, it failed to export an additional $2.5 billion worth of H20 products in the same time frame.
Jensen Huang, creator and CEO of NVIDIA, said, “Our ground-breaking Blackwell NVL72 AI supercomputer—a ‘thinking machine’ built for reasoning—is now in full-scale production across system makers and cloud service providers.”
“NVIDIA’s AI infrastructure is highly sought after globally. As AI agents are employed more frequently, the demand for AI computation will rise, and in just one year, the output of AI inference tokens has grown tenfold. “NVIDIA is at the forefront of this significant shift, and like electricity and the internet, AI is becoming a necessary component of infrastructure in many nations,” he added.
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Nvidia’s stock price jumped 6% to $142.22 on the Nasdaq after hours.
The company’s net income grew by 26% year over year, from $14.9 billion to $18.8 billion. In the first quarter, gaming revenue reached a record $3.8 billion, a 42% year-over-year rise. In contrast, sales in the automotive and robotics industry increased by 72% to $567 million.
Nvidia is expanding its manufacturing presence by building factories in the US and collaborating with partners to develop NVIDIA AI supercomputers locally. The company unveiled Dynamo and Blackwell Ultra, two new AI platforms, to scale reasoning models.
