Nvidia’s Earnings: A Rollercoaster Ride of Chips and Sarcasm! 🎢💰

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So, chip-making behemoth Nvidia just dropped its first quarter earnings, and let’s just say it’s a mixed bag—like a box of chocolates, but with more silicon and fewer calories. They beat Wall Street expectations on revenue, but missed the mark on income. Thanks, US export restrictions! 🙄

In their earnings report released on May 28 for the first quarter of the 2026 fiscal year (which ended April 27, because who doesn’t love a good time warp?), Nvidia reported a whopping $44.1 billion in revenue. That’s up 12% from last quarter and a jaw-dropping 69% from a year ago! They even beat Zacks analyst estimates by nearly 2.7%. Take that, Wall Street! 💪

But hold your applause! The earnings per share came in at 81 cents, which is like ordering a fancy latte and getting decaf instead. Analysts were expecting 85 cents. Oops! 😬 Still, they recorded a net income of $18.8 billion, which is up 26% compared to last year. So, you know, not all doom and gloom.

In a call that was probably more exciting than your last Zoom meeting, Nvidia’s founder and CEO Jensen Huang declared that the “global demand for Nvidia’s AI infrastructure is incredibly strong.” Apparently, countries are starting to see AI as essential infrastructure—just like electricity and the internet. Who knew? ⚡️🌐

He also mentioned that “AI inference token generation has surged tenfold in just one year.” So, if you’re not on the AI train yet, you might want to hop on before it leaves the station! 🚂💨

US Export Rules: The $8 Billion Party Pooper 🎉🚫

Nvidia’s lower-than-expected income is thanks to a $4.5 billion charge from the US government’s restrictions on exporting its high-powered H20 AI chips to China. Thanks, Uncle Sam! 🙃

Looking ahead to Q2, Nvidia expects revenues around $45 billion, which reflects a loss of approximately $8 billion due to those pesky export control limitations. But don’t worry, they’re launching a new lower-cost AI chip specifically for China. Mass production starts in June, so stay tuned! 📅

Most of Nvidia’s revenue came from their data center, which hit $39.1 billion—up 10% from the previous quarter. So, they’re still rolling in the dough! 💵

Shares in Nvidia Corp (NVDA) closed trading on May 28 down 0.51% at $134.81, but rallied 4.89% after the bell to $141.40. Talk about a comeback! 📈

Huang has previously said his firm is focused on being at the forefront of agentic AI as the tech race heats up. It’s like the Olympics, but with more coding and fewer medals. 🏅

Meanwhile, other US firms are also ramping up their AI game. Microsoft announced in September that it’s establishing two AI centers in Abu Dhabi. Because why not? 🌍

And let’s not forget about Bitcoin mining companies, which are diversifying their income streams to include AI. They’re converting some of their crypto mining operations to help run those compute-intensive large language models. Talk about multitasking! 💻

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2025-05-29 05:05