Revenue increased 69% from the same period last year to $44.1 billion, surpassing the Street’s projection of $43.3 billion, per Visible Alpha. Profits came in at $18.8 billion, though, falling from $22 billion last quarter and missing the $19.5 billion mark analysts expected. That meant Nvidia posted diluted earnings per share of $0.76, down from $0.89 last quarter and below the projected $0.79.
“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,” he added.
The top-line results allowed investors to breathe a sigh of relief. Shares jumped over 4% to hit the $140 mark in extended trading Wednesday evening.
Will Rhind, founder and CEO of ETF issuer GraniteShares, told Fortune the results assured traders that the AI trade remains intact.
“And I think that’s, at the end of the day, what the bulls wanted to see,” said Rhind, whose firm manages leveraged and inverse ETFs for Nvidia and other companies.
Nonetheless, gross margins dipped to 60%, falling below the 66% figure Wall Street had feared. Last quarter, CFO Colette Kress said the company expected margins to be in the low 70s to start the year as Nvidia continues to ramp up its next-generation Blackwell offering.
Dave Wagner, portfolio manager at Aptus Capital Advisors, told Fortune he thought revenue guidance of $45 billion or higher would keep most investors in the stock. For the first time since the company stormed to prominence, he said before the call, it felt like Nvidia had a relatively low bar to clear.
Scott Acheychek, the chief operating officer of Rex Financial, agreed that investors entered Wednesday’s print guarded.
“I feel like nobody wanted to believe that it could be good,” he told Fortune after the earnings release.
Some of that buzz may have eased, however, as the stock’s breakneck growth has waned. After skyrocketing 239% and 171% in 2023 and 2024, respectively—accounting for more than a fifth of the S&P 500’s overall gain last year—Nvidia shares entered Wednesday’s earnings down slightly year to date, trading just short of the $140 mark. They had climbed more than 40%, however, after plunging to as low as $94 amid President Donald Trump’s chaotic tariff rollout in early April.
“Whether there’s a market for them in China under this administration at all is a reasonable question,” he said.
With that in mind, Wednesday’s results appear all the more impressive.
For now, that means companies continue to jostle to be first in line for the latest and greatest of what Nvidia has to offer.
