Nvidia tops Q1 revenue estimates but profit misses
Published: 16:26 28 May 2025 EDT
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) beat Wall Street expectations for first-quarter revenue on Wednesday, driven by surging demand for its data center chips, even as profit and gross margin fell short of forecasts.
Shares jumped more than 3.5% in after-hours trading as the company projected continued growth despite US export controls.
The chipmaker reported revenue of $44.1 billion for the quarter ended April 28, up 69% from a year earlier and ahead of analysts’ average estimate of $43.29 billion, according to LSEG data.
Data center revenue — a key driver of Nvidia's AI boom — rose 73% year-over-year to $39.1 billion.
However, adjusted earnings per share came in at $0.81, below the consensus estimate of $0.93. Adjusted gross margin was 61%, well under the expected 71%, weighed down in part by the impact of lost revenue from export restrictions on its advanced H20 chips to China and other markets.
Nvidia said it was unable to ship an additional $2.5 billion in H20 chip revenue in the first quarter. The company added that the second-quarter outlook includes an $8 billion reduction in expected H20 sales due to the ongoing export controls.
Still, Nvidia expects second-quarter revenue of $45 billion, plus or minus 2%, a figure that investors interpreted as bullish despite the headwinds.
CEO Jensen Huang said the company’s new Blackwell NVL72 AI supercomputer is now in production, signaling continued momentum in high-performance AI systems.
