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May 29 - Nvidia (NASDAQ:NVDA) posted stronger-than-expected fiscal first-quarter results late Wednesday, lifting shares by 5.5% in after-hours trading. The company cited continued strength in AI demand, despite added export restrictions to China.
For the quarter ended April 27, NVDA reported adjusted earnings of $0.81 per share, ahead of analysts' consensus of $0.75. Revenue jumped 69% year-over-year to $44.06 billion, beating the expected $43.25 billion, according to a Wednesday press release.
Data center revenue rose 73% to $39.1 billion, remaining the largest contributor. Gaming sales reached $3.8 billion, up 42% from a year earlier. Revenue from professional visualization increased 19% to $509 million, while automotive and robotics jumped 72% to $567 million.
Despite revenue headwinds from new export curbs, estimated to reduce sales by $2.5 billion during the quarter, Nvidia said its AI computing products remain in high demand globally. CEO Jensen Huang noted that AI infrastructure is now viewed as essential like electricity and the internet.
Adjusted gross margin stood at 60.5%, including a $4.6 billion revenue hit from H20-related controls. Without that charge, gross margin would have been 71.3%.
For Q2, Nvidia projects revenue of $45 billion, plus or minus 2%. That includes an expected $8 billion loss from H20 restrictions. Analysts had forecast $45.92 billion.
This article first appeared on GuruFocus.