Nvidia reported first-quarter fiscal 2026 revenue of $44.1 billion, marking a 69% year-over-year increase, driven by strong demand for AI infrastructure. The data centre segment contributed $39.1 billion, up 73% from the previous year.
The company incurred a $4.5 billion charge due to US export restrictions on its H20 AI chips to China, resulting in unsold inventory and purchase obligations. Additionally, Nvidia was unable to ship $2.5 billion worth of H20 products in the quarter. The company anticipates an $8 billion revenue impact in the second quarter from these restrictions.
Despite these challenges, Nvidia projects second-quarter revenue of approximately $45 billion. CEO Jensen Huang emphasised the company’s global expansion efforts, including AI infrastructure projects in Saudi Arabia, the UAE, and Taiwan, to mitigate the impact of the China market restrictions.
Nvidia’s stock rose by more than 5% in after-hours trading following the earnings report.
