Nvidia shares extend gains in premarket as robust AI demand remains intact
Nvidia delivered Wednesday better-than-expected first-quarter results, but the chipmaker flagged an $8 billion hit to Q2 guidance from the U.S. ban on chip sales to China, News.az reports citing Investing.
Still, Nvidia (NASDAQ:NVDA) shares jumped 5.5% in premarket trading by 08:19 GMT on Thursday, as the results confirmed that AI demand remains strong.
For the three months ended Apr. 27, the company announced first-quarter adjusted earnings per share of $0.96 on revenue of $44.06 billion. Analysts polled by Investing.com anticipated per-share income of $0.93 and revenue of $43.31B.
Nvidia’s data center unit, which makes up the bulk of revenue, saw revenue jump 73% to $39.1B, just missing for $39.36B. Gaming revenue for the first quarter was up 42% from a year ago.
"Global demand for NVIDIA’s AI infrastructure is incredibly strong," CEO Jensen Huang said. "AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation."
The beat comes despite a drag on growth from the U.S. ban on Nvidia H20 chips to China. The company took a $4.5B hit from the ban, which was less than the previously estimated $5.5B charge as it repurposed parts of the H20 chips.
"The $4.5 billion charge was less than what we initially anticipated as we were able to re-use certain materials," the company said.
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