NVIDIA Reports Big Earnings in Q1 Due to AI Boom

NVIDIA has released its Q1 earnings for 2027, showing a big profit from the AI boom despite losing market share in China. The company made $81.6 billion in revenue, mostly from AI chip sales. This is due to high demand.

This is a 20% increase from last quarter and an 85% jump from last year, breaking NVIDIA's records.

NVIDIA CEO Jensen Huang said the buildout of AI factories is happening very fast. He also said Agentic AI is doing productive work and scaling quickly across companies.

NVIDIA is investing $80 billion in its stock buyback program and increasing dividends from $0.01 to $0.25 per share.

These strong results come despite NVIDIA's struggles in China's large market. Sales to China used to be around one-fifth of NVIDIA's revenue but have been declining since 2023.

US government policies have impacted NVIDIA's business in China. In 2022, the US restricted deliveries of NVIDIA's A100 and H100 chips to China due to security concerns.

There are still some less powerful NVIDIA chips available in China. The US government approved sales of NVIDIA's H20 AI chips to Chinese companies last July.

However, the Chinese government has expressed security concerns and discouraged use of NVIDIA's H20 chips.

The US government approved sales of NVIDIA's advanced H200 chips to select Chinese customers. These customers can buy up to 75,000 chips.

Despite this, there have been no deliveries of NVIDIA's chips to these approved Chinese buyers. Chinese companies seem to have lost interest.

US President Trump said Chinese companies chose not to buy the H200 chips. They want to develop their own instead.

The Chinese government banned NVIDIA's RTX 5090D V2 gaming chip during Trump's visit to Beijing.

NVIDIA CEO Jensen Huang said the company has largely conceded the Chinese market to competitor Huawei.

Huang said the demand in China is large, and Huawei is doing well. NVIDIA's absence from the market is a big loss.

Huang believes the Chinese market will eventually open up. For now, the AI boom is enough to keep NVIDIA going.

NVIDIA is focusing on other markets due to its struggles in China.

NVIDIA

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