The AI chip manufacturer reported adjusted earnings of 81 cents per share on record revenue of $44.06 billion, up to 69% year-over-year. The surge was driven by its data center segment, which soared 73% to $39.1 billion.
While the stock remains flat in 2025 after nearly tripling last year, Nvidia now faces growing trade restrictions and a maturing AI data center market, encountering new challenges ahead.
In a release made by CEO Jensen Huang, he claimed that “Global demand for Nvidia’s AI infrastructure is incredibly strong," adding that “AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate.”
Washington is continuing its efforts to restrict China’s access to advanced U.S. technology. This has resulted in tighter limits on Nvidia’s AI chip exports, blocking the company from a major semiconductor market and putting pressure on its global growth.
During a conference call with analysts, Huang shared concerns over U.S.-China tensions, warning that the company risks losing access to China’s vast AI developer base. He acknowledged China’s rapidly advancing chip sector, saying it’s closing in on the U.S.’s dominance.
Hopper chips can no longer be modified for the Chinese Market, as Huang told analysts. However, the company is developing a Blackwell chip variant specifically designed for China. This move represents Nvidia’s efforts to maintain its presence in the Chinese Market, despite growing export curbs.
Nvidia’s shares could be less affected in the future despite challenges in China, as the chip manufacturer secures a series of deals in the Middle East.
Earlier this month, the chip manufacturer signed agreements to support initial phases of a massive 10-square-mile data center project in the United Arab Emirates, which could eventually use 5 gigawatts of AI infrastructure.
"We have a line of sight to projects requiring tens of gigawatts of Nvidia AI infrastructure in the not-too-distant future," said Colette Kress, Nvidia’s Chief Financial Officer.
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