Nvidia Hits Record Revenue While Yielding China AI Market

Nvidia reported another quarter of extraordinary growth driven by surging demand for its chips in artificial intelligence applications. Revenue reached 81.6 billion dollars in the first quarter, an 85 percent increase from the prior year, while net income more than tripled to 58.3 billion dollars. The results exceeded analyst expectations and reflected continued strength in the company's data center segment, which supplies hardware to major developers of AI models.

Chief executive Jensen Huang described demand as having gone parabolic, attributing the surge to the arrival of agentic AI systems capable of independent operation. The company projected second-quarter revenue of 91 billion dollars and forecast annual global spending on AI infrastructure between 3 trillion and 4 trillion dollars by the end of the decade. To return capital to shareholders, Nvidia raised its quarterly dividend from one cent to 25 cents per share and authorized an 80 billion dollar share repurchase program.

Shares nevertheless declined 1.6 percent in after-hours trading. Market participants have grown accustomed to repeated outperformance, and some analysts cited concerns over intensifying competition in the semiconductor sector. Nvidia's market capitalization stands near 5.3 trillion dollars, making it the world's most valuable company and representing roughly 8 percent of the S&P 500 index.

Huang also addressed the impact of U.S. export restrictions on sales to China. He stated that the company has largely conceded the Chinese AI chip market to domestic competitor Huawei, noting that local firms have filled the gap left by restricted access. The Chinese market previously accounted for at least one-fifth of Nvidia's data center revenue. Recent licensing requirements imposed by the Trump administration have further limited shipments of advanced chips, prompting Huang to advise investors to expect no near-term reopening.

Broader market effects appeared in related equities. Shares of SoftBank Group rose nearly 20 percent, adding more than 35 billion dollars to its market value. The Japanese firm's investments in Arm Holdings and OpenAI tie its performance closely to continued expansion in AI infrastructure. Arm Holdings itself gained over 15 percent on the day.

The earnings underscore how private innovation and customer demand have propelled Nvidia's growth despite regulatory constraints on key export markets. Huang emphasized that the company's technology remains central to the expanding ecosystem of AI development worldwide.