Nvidia Reports 69% Surge in Quarterly Revenue to $44.1 Billion Amid Geopolitical Challenges

Nvidia has faced significant fluctuations recently due to U.S. government actions. In the past month, sales of artificial intelligence chips to China were blocked, while similar sales to the Middle East received approval.

Despite these geopolitical headwinds, Nvidia sustained its rapid growth as a top supplier of AI-focused computer chips.

On Wednesday, Nvidia announced that its revenue for the most recent quarter surged 69 percent year-over-year, reaching $44.1 billion. Net income also climbed 26 percent to $18.78 billion. The revenue figure surpassed market expectations of $43.28 billion, although profit fell short of the predicted $19.49 billion.

The company acknowledged that restrictions imposed by the U.S. government on chip sales to China would reduce revenue by $4.5 billion—an improvement over the earlier estimate of a $5.5 billion loss. These limitations have effectively excluded Nvidia from the Chinese AI chip market, which remains the largest consumer of semiconductors used in devices ranging from smartphones to automobiles.

Looking ahead, Nvidia forecasts a 50 percent increase in revenue for the current quarter compared to the previous year, projecting $45 billion in sales. This anticipated growth is driven by expanding demand for its latest AI chip, Blackwell, and aligns closely with analysts’ estimates of $45.75 billion. The outlook underscores the early-stage momentum of AI adoption within the technology sector, with significant growth potential remaining.

Following the earnings announcement, Nvidia’s shares rose by over 4 percent in after-hours trading. The company now holds the position as the world’s second most valuable publicly traded firm, trailing Microsoft but surpassing Apple, with a market capitalization of $3.3 trillion.