Nvidia reported $44.1 billion revenue in Q1 2025, exceeding expectations, but US export restrictions to China caused an $8 billion loss.
Nvidia, a leader in AI hardware, released its Q1 2025 financial report, revealing $44.1 billion in revenue—beating forecasts—while announcing an $8 billion negative impact from export restrictions to China.
Nvidia’s Revenue Growth in Q1 2025
Nvidia (ticker: NVDA), a key player and emblem of the booming AI market since late 2022, published its Q1 2025 financial results after the market closed on Wednesday. Despite some challenges, the report indicates a performance better than market expectations.
During this quarter, Nvidia’s revenue reached an impressive $44.1 billion, surpassing analysts’ estimates of $43.3 billion. For comparison, the company generated $26 billion in the same period last year, reflecting a remarkable growth of over 69%.
Earnings Per Share and Data Center Segment Performance
Adjusted earnings per share (EPS), excluding costs related to the H20 chips, stood at $0.96, surpassing the $0.93 forecast and the $0.61 EPS reported in the previous year.
However, Nvidia’s data center revenue—a core pillar of its business—fell slightly short of expectations, reaching $39.1 billion compared to an estimated $39.2 billion, though this still represents a significant increase from $22.5 billion the year before.
Impact of U.S. Export Restrictions to China
One of the key highlights of the report was Nvidia’s acknowledgment of the adverse effects of U.S. export regulations on its China operations. Under these rules, the export of H20 chips to China has been banned, resulting in an $8 billion revenue loss expected in the second quarter of this year.
Nvidia CEO Jensen Huang emphasized in an interview last week that these restrictions have cost the company $15 billion in lost sales. He stated, “The $50 billion China market is effectively closed to the U.S. industry. The H20 export ban ended our Hopper data center business in China, and we cannot further modify Hopper to comply.”
He added, “We are exploring limited ways to compete, but Hopper is no longer an option. China will continue to advance in AI with or without U.S. chips.”
Market Reaction and Nvidia’s Future Outlook
Despite these challenges, Nvidia’s stock price surged over 6% in pre-market trading on Thursday, reaching $143.15—reflecting strong market confidence in the company’s long-term prospects.
Nvidia’s revenue growth is largely fueled by significant chip investments from major tech giants such as Microsoft, Amazon, and Meta, which have sharply increased demand for Nvidia’s AI products.
Although Nvidia reported a slight miss on EPS—$0.84 versus the projected $0.96—analysts consider this a temporary setback. The company’s commitment to maintaining an operating margin above 70% this year signals strong confidence in its efficiency.
CEO Jensen Huang also highlighted that global demand for AI infrastructure remains incredibly robust, and the company is confidently ramping up production of its next-generation Blackwell chips.
Conclusion
In summary, despite the trade-related obstacles, Nvidia remains a dominant player in the AI chip market and is expected to continue its steady growth through innovation and technology development.
