Nvidia Reports Record Revenue Amid Growing Demand for AI Infrastructure

By Netvora Tech News

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Nvidia, the pioneer in AI and graphics processing, has announced record revenue for the first quarter ended April 27, 2025, with a total of $44.1 billion. This represents a 12% increase from the previous quarter and a 69% surge from the same period last year. The company's revenue growth is fueled by strong demand for its AI infrastructure, which is being driven by the rapid adoption of artificial intelligence across various industries. However, Nvidia's sales were impacted by the US government's decision to require a license for exports of its H20 products to the China market. As a result, the company incurred a $4.5 billion charge in the first quarter, associated with H20 excess inventory and purchase obligations. Prior to the new export licensing requirements, sales of H20 products were $4.6 billion for the first quarter. However, Nvidia was unable to ship an additional $2.5 billion of H20 revenue due to the new restrictions. Excluding the $4.5 billion charge, Nvidia's non-GAAP gross margin would have been 71.3%. For the quarter, Nvidia reported GAAP and non-GAAP earnings per diluted share of $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, the company's non-GAAP diluted earnings per share would have been 96 cents. Analysts had expected net income of 75 cents a share on Q1 revenue of $43.2 billion. Nvidia's CEO, Jensen Huang, said in a statement, "Our breakthrough Blackwell NVL72 AI supercomputer — a 'thinking machine' designed for reasoning — is now in full-scale production across system makers and cloud service providers. Global demand for Nvidia's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation."

Data Center Revenues

Data center revenues continue to drive Nvidia's growth, with the company reporting strong demand for its AI-powered servers and data analytics solutions.

Gaming and AI PC

In addition to its data center revenues, Nvidia is also seeing strong demand for its gaming and AI PCs. The company's GeForce GPUs and Tegra processors are being used in a wide range of applications, from gaming and streaming to artificial intelligence and autonomous vehicles.