Nvidia’s first-quarter results highlight how its AI strategy is powering unprecedented revenue growth, despite external challenges like export restrictions.
The company posted $44.1 billion in revenue, up 69 percent year-over-year, with its Data Center business contributing the lion’s share at $39.1 billion, up 73 percent. This surge is fueled by skyrocketing demand for Nvidia’s accelerated computing platforms — particularly for generative and agentic AI, large language models, and recommendation engines. Data Center Computing revenue surged 76 percent to $34.155 billion.
Nvidia’s Blackwell architecture, designed for AI workloads, has seen rapid adoption across all customer segments, with cloud service providers accounting for nearly half of Data Center revenue.
Nvidia’s AI focus extends beyond compute, with networking revenue climbing 56 percent year-over-year to $5 billion, driven by the NVLink fabric in GB200 systems and strong demand for Ethernet solutions in AI deployments. This integration of compute and networking illustrates Nvidia’s strategic positioning as a full-stack AI infrastructure provider, enabling hyperscalers and enterprises to scale AI workloads effectively.
Gaming, traditionally Nvidia’s flagship business, also saw a significant lift, with revenue up 42 percent year-over-year and 48 percent sequentially to $3.763 billion, driven by the Blackwell architecture’s performance leadership.
Meanwhile, Nvidia’s Professional Visualization revenue grew 19 percent to $509 million as Nvidia’s GPUs power AI-accelerated workflows, graphics rendering, and data simulation.
Nvidia’s Automotive revenue surged 72 percent to $567 million, underscoring Nvidia’s growing footprint in autonomous vehicle platforms.
CEO Jensen Huang’s remarks underscore Nvidia’s central role in the AI revolution, framing its Blackwell NVL72 AI supercomputer as a “thinking machine” designed for reasoning, and highlighting how AI is rapidly becoming critical infrastructure on par with electricity and the internet.
Jensen Huang’s comments on the surge in AI inference token generation — up tenfold in a year — illustrate the insatiable demand for AI compute, a trend Nvidia is uniquely positioned to capitalize on.
However, geopolitical headwinds remain a factor. The new U.S. export restrictions on Nvidia’s H20 products to China have led to a $4.5 billion charge in the quarter due to excess inventory and purchase obligations. While this dented results, Nvidia managed to salvage some materials, softening the blow, and it still recorded $4.6 billion in H20 sales before the licensing requirements took effect. The impact is expected to carry into the next quarter, but Nvidia’s strong pipeline across its AI-centric portfolio suggests continued resilience.
Looking ahead, Nvidia expects Q2 revenue of $45 billion, plus or minus 2 percent, despite the loss of approximately $8 billion in H20 sales due to the export ban. This guidance reflects confidence in the broader AI infrastructure market, as Nvidia continues to dominate the landscape by delivering end-to-end AI platforms that address both compute and networking needs.
Baburajan Kizhakedath
