Nvidia breaks profit records again, but investors remain dissatisfied – BBC

American technology giant Nvidia reported another record quarter, exceeding analyst expectations for revenue and profit amid the artificial intelligence boom. This was reported by the BBC, according to UNN.

The company is one of the key suppliers of chips for the development of AI infrastructure, particularly for OpenAI and Meta, which is why its financial results are closely monitored by investors and the market.

Nvidia's revenue grew by 85%

Nvidia reported that first-quarter revenue rose 85% year-on-year to $81.6 billion. The company's net profit more than tripled, reaching $58.3 billion.

The main driver of growth was the data center division, which provides AI computing and infrastructure for artificial intelligence.

Nvidia CEO Jensen Huang stated that demand for AI infrastructure "has gone parabolic."

"The reason is simple – the era of agentic AI is here," he said.

The company also announced an increase in quarterly dividends from one to 25 cents per share and an $80 billion share buyback program.

Why Nvidia shares fell anyway

Despite the record results, Nvidia shares fell 1.6% in after-hours trading.

Analysts explain this by the fact that investors have become accustomed to the company's exceptionally strong performance and expect even higher growth rates.

Victoria Scholar, head of investment at Interactive Investor, noted that "the bar for Nvidia is now extremely high."

According to her, the market is also concerned about potential competitors to Nvidia, as major tech companies are increasingly developing their own AI chips.

The Chinese market effectively handed over to Huawei

The BBC draws particular attention to the competition between the US and China in the field of artificial intelligence and semiconductors.

In January, the Donald Trump administration allowed Nvidia to sell H200 chips to China under certain conditions. However, Chinese authorities have not yet approved these shipments, as they seek to support their own manufacturers.

Nvidia stated that it does not expect revenue from data center chip sales in China in the current quarter.

Jensen Huang himself admitted that the company has "largely conceded" the Chinese market to Huawei.

However, analysts believe that global demand for AI outside of China is sufficient for Nvidia's continued rapid growth.

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