Nvidia Posts Record Results
Nvidia reported a record quarter with sales and profits beating expectations, but shares fell in after-hours trading.
ManyPress Editorial Team
ManyPress Editorial
Nvidia has reported a record quarter with sales and profits beating expectations. The company's first-quarter revenue was up 85% on the year to $81.6bn, while net income more than tripled to $58.3bn. Despite this, shares in the company fell 1.6% in after-hours trading.
Record Results
Nvidia's record results were driven by strong growth in its data centre division. The company forecasts spending on AI infrastructure to be between $3tn and $4tn a year by the end of this decade. Chief executive Jensen Huang said 'demand has gone parabolic' due to the era of agentic AI being here.
Investor Reaction
Despite the strong results, Nvidia's shares fell in extended trading. Analysts attribute this to investors seeking hypergrowth and the high expectations surrounding the company. Ruth Foxe-Blader, managing partner at Citrine Venture Partners, said 'Nvidia represents 8% of the S&P 500. Unless there's a belief in this continued parabolic growth it's difficult for investors to get super excited.' Victoria Scholar, head of investment at interactive investor, agreed that the bar is very high for the artificial intelligence bellwether.
Key points
- Nvidia's first-quarter revenue was up 85% on the year to $81.6bn
- Net income more than tripled to $58.3bn
- Shares in the company fell 1.6% in after-hours trading
- Nvidia forecasts spending on AI infrastructure to be between $3tn and $4tn a year by the end of this decade
- The company's stock market value is around $5.3 trillion
- Nvidia represents 8% of the S&P 500
This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
