Chipmaking powerhouse Nvidia has posted mixed results for its fiscal 2026 first quarter, outpacing revenue forecasts but falling short of earnings expectations, as U.S. export restrictions to China weigh on its bottom line.
The company announced on May 28 that it generated $44.1 billion in revenue for the quarter ended April 27—an impressive 12% increase from the previous quarter and a 69% year-over-year increase. The figure surpassed Zacks analyst estimates of $42.91 billion by 2.7%.
However, Nvidia’s net income stood at $18.8 billion, with earnings per share landing at 81 cents, below analyst expectations of 85 cents per share. The earnings miss was largely attributed to a $4.5 billion charge tied to U.S. government restrictions on the export of its H20 AI chips to China.
Speaking on the company’s earnings call, CEO Jensen Huang emphasized the growing global appetite for AI infrastructure, describing it as “essential” alongside utilities like electricity and the internet.
“AI inference token generation has surged tenfold in just one year,”
Huang noted, adding that demand is poised to accelerate as AI agents become more mainstream.
Nvidia’s data centre division remains its main revenue driver, contributing $39.1 billion to total revenues—a 10% increase from the previous quarter.
Looking ahead, Nvidia expects second-quarter revenues of approximately $45 billion, factoring in an $8 billion loss in H20 chip revenue due to the ongoing export control measures. In response, the company is preparing to roll out a new lower-cost AI chip tailored specifically for the Chinese market, with mass production slated to begin in June.
Despite closing May 28 trading slightly down by 0.51% at $134.81, Nvidia’s stock surged 4.89% in after-hours trading to $141.40 following the earnings release, according to Google Finance.
As the race for AI dominance intensifies, Nvidia remains focused on advancing agentic AI—technology capable of acting autonomously and adapting in real-time. Other U.S. tech giants, including Microsoft, are also expanding their global presence.
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