Nvidia Tops Q1 Estimates, But Warns of $8B Revenue Hit from China Chip Ban
Nvidia reported stronger-than-expected results for its fiscal first quarter on Wednesday but cautioned that U.S. restrictions on chip exports to China will likely result in an $8 billion impact on second-quarter revenue guidance.
Shares of Nvidia (NASDAQ: NVDA) rose over 2% in after-hours trading following the earnings release.
For the quarter ending April 27, Nvidia posted adjusted earnings per share of $0.96 on revenue of $44.06 billion, surpassing analysts’ expectations of $0.93 EPS and $43.31 billion in revenue, according to Investing.com.
The company’s data center division, which drives most of its revenue, posted a 73% increase to $39.1 billion, slightly below forecasts of $39.36 billion. Meanwhile, gaming revenue climbed 42% year-over-year.
Despite U.S. export bans impacting its H20 chips bound for China, Nvidia managed to beat expectations. The firm reported a $4.5 billion loss tied to the restrictions—less than the $5.5 billion originally projected—thanks to the repurposing of some chip components.
“The $4.5 billion charge came in lower than expected because we were able to reallocate some materials,” the company stated.
Looking forward, Nvidia projects second-quarter fiscal 2026 revenue of $45 billion, give or take 2%, which falls short of the $45.66 billion forecast. The shortfall reflects the expected $8 billion hit from the ongoing U.S.-China chip sales ban, which will be accounted for in the current quarter.
