The CEO of Nvidia facilitates the concerns about China with a positive sales forecast

Jensen Huang, CEO of Nvidia Corp. The company expects an income of about $ 45 billion in the second fiscal quarter, which runs until July. New export restrictions will cost Nvidia about $ 8 billion in Chinese revenue during the period, but the forecast still met the estimates of analysts. This contributed to the shares trading about 4% in extended on Wednesday. The prospect shows that Nvidia increases the production of Blackwell, the latest semiconductor design. The chipmaker – now the world’s largest according to turnover and market value – dominates the field of AI accelerators, the components that help develop and manage artificial intelligence models. And an ever-broader range of hardware and software allows Nvidia to sell more products to customers. As part of the push, the company offers its chips as part of the entire computer systems – a move it says is needed to speed up the deployment of more complicated and powerful technology. Nvidia expects AI infrastructure to eventually transform economies around the world. “Every nation now considers AI as a core to the next industrial revolution – a new industry that delivers intelligence and essential infrastructure for every economy,” Huang said at a conference with analysts. Nvidia shares closed at $ 134.81 in New York earlier, which changed the share little in 2025. Sales in the first quarter, which ended on April 27, rose 69% to $ 44.1 billion. This compared to an average estimate of $ 43.3 billion. The growth would be enviable for most chipmakers, although it was the smallest percentage of profit in two years. The profit was 96 cents per share, minus certain items. Wall Street was looking for 93 cents. The data center unit, a division in itself greater than all the closest competitors of Nvidia, had a $ 39.1 billion sales. It was just embarrassed by the average estimate of $ 39.2 billion. Game-related sales and the most important enterprise of Nvidia was $ 3.8 billion. Analysts have projected an average of $ 2.85 billion. Automotive was $ 567 million. One prolonged question is whether US trade restrictions on China Nvidia’s long -term growth will impede. In April, the Trump administration placed new curbs on the export of data center processors to Chinese clients, which effectively closed Nvidia out of the market. The Chipmaker said on Wednesday that it had incurred a $ 4.5 billion wicker rumble due to the problem. “The broader concern is that trade tensions and potential tariff impact on the expansion of data centers can create a wind for the demand for AI chips,” Emareter analyst Jacob Bourne said in a note. Nvidia also announced that it is being looked at in China, where regulators demanded that they continue to provide local businesses in exchange for the regulatory approval of the acquisition of Mellanox. The company warned that it could experience fines in that case. Nvidia completed the purchase of Mellanox, a network technology manufacturer, in 2020. ‘Regulators in China are investigating whether the appropriate US export controls are unfairly distinguishing against customers in the China market,’ it states. “If regulators conclude that we do not fulfill such obligations, or that we have violated any appropriate law in China, we may be subject to financial fines, restrictions on our ability to run our business.” On the call with analysts, Huang was asked if the company would produce a new slide with which it would be sent to China. Earlier, it created the less powerful H20 product for that purpose, and adjusted it to comply with the previous US rules. But stricter curbs are now limiting the sale in the country. Huang said Nvidia could not further reduce the capabilities of the H20 and still use a product that was useful. However, the company thinks whether it can come up with something “interesting” to the market. He said Nvidia is only discussing the idea and currently has nothing. Nvidia will consult with the US government if it can design something. The CEO used the call to renew his appeal to the Trump administration to make it produce for China again. Without getting the approval, global leadership in AI is not guaranteed, he said. Chinese businesses will succeed in AI themselves, Huang said. “The loss of access to the China AI joint market, which we think will grow to nearly $ 50 billion, will have a significant adverse impact on our business and favor our foreign competitors in China and worldwide,” he said. Nvidia, who first gained fame on the sale of graphic cards to gamers, has become an AI power station for the past two years. California’s company Santa Clara was rapidly realizing the potential for what he called accelerated computer-a hardware and software arrangement that sets the way for machines that can learn and reason like humans. The increase of the chipmaker to a market value of over $ 3 trillion, about 10% of the total value of the Nasdaq, has investors who assess it according to exceptionally high standards. They have become accustomed to rapid growth and stratospheric profitability. Even marginal misgivings relative to the elevated estimates, Stoke Fears about the AI ​​boom that is delayed. Nvidia accounts for about 90% of the market for AI Accelerator Chips, an area that has been extremely profitable. This financial year, the company will have nearly $ 200 billion in annual sales, of $ 27 billion, just two years ago. While printing Nvidia from China, other policy changes can help open extra markets. The US president recently visited Saudi Arabia and other states in the Middle East, where he announced major AI projects. It reversed a pressure from its predecessor to combat access to AI technology. © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text.