Strong NVIDIA NVIDA Reports, despite the regulations for exporting new China on artificial intelligence chips

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Technology giant NVIDIA She reported her profits in the first quarter on Wednesday, overcoming the expectations of analysts, despite the expectation of its sales in the second quarter below the estimates amid export controls to China covering some AI chips.

Nafidia, leader in Artificial Intelligence (AI) Space, arrows have seen 3 % rising in trading after hours after advertising. The profit report showed that net income in the first quarter increased by 26 % from last year at about 19 billion dollars, as revenues rose to 44 billion dollars, an increase of 69 % over last year.

The company’s revenues from data centers reached $ 39 billion in the first quarter – an increase of 10 % over the previous quarter and 73 % over last year. NVIDIA also builds factories in the United States and works to produce giant computers from artificial intelligence in the United States with its partners.

“Our excellent computer from Blackwell Nvl72 AI-is a” thinking machine “designed for thinking-is now working in full production through system makers and cloud services providers.”

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Nvidia Jensen Huang CEO holds a chip

The CEO of Nvidia Jensen Huang said that the company is at a “deep transformation” center led by artificial intelligence. (Kio Kut / Bloomberg via Gettty Imagesges / Getty Images)

“The global demand for NVIDIA infrastructure is incredibly strong. The distinguished symbol of the spontaneous organization has risen for ten times in only one year, and as Artificial intelligence agents It has become prevalent, and the demand for artificial intelligence will accelerate. ”

“Countries around the world recognize Amnesty International as an essential infrastructure – just like electricity and the Internet – and Nvidia stands in the midst of this deep shift,” added Huang.

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The NVIDIA profits issue indicated that on April 9, the United States government informed the company that it would require a license to export it H20 products to ChinaAnd, causing the company to incur fee of several billion dollars per quarter.

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In recent years, the United States has imposed increasingly strict Export controls In China, which applies to the most advanced artificial intelligence chips, as a way to deny the existence of a geopolitical deduction of advanced technology in a competitive economy sector.

Nafidia headquarters

NVIDIA is located in Santa Clara, California. (Photographer: Lauren Elliot / Bloomberg via Getti Imhasers / Getty Pictures)

The company said: “As a result of these new requirements, NVIDIA incurred a fee of $ 4.5 billion in the first quarter of the fiscal year 2026 linked to the inventory obligations and extra purchase H20 while reducing the demand for H20.”

“H20 products sales amounted to $ 4.6 billion for the first quarter of 2026 before the new export license requirements. NVIDIA was not able to charge $ 2.5 billion of H20 revenues in the first quarter.”

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NVIDIA added that it expects to miss sales of $ 8 billion in the second quarter due to export restrictions.

Reuters contributed to this report.



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