The bottom-line results would have been $0.96 per share, excluding the charge related to the export curbs for its China-specific H20 chip and its tax impact.

Nvidia Corp. (NVDA) shares climbed in Wednesday’s extended trading as the artificial intelligence stalwart announced strong quarterly results despite the China chip curb charges, but revenue was a touch soft.

The chipmaker's stock ended Wednesday’s session down 0.51% at $134.81 but rallied 4.87% after-hours trading. The rally could gain further steam as a U.S. trade court blocked some of President Donald Trump’s tariffs.

Q1 Numbers

The Santa Clara, California-based company reported adjusted earnings per share (EPS) of $0.81 and revenue of $44.06 billion for the first quarter of the fiscal year 2026 — rising 31% and 69%, respectively, from the year-ago period’s $0.61 and $26.04 billion.

Nvidia noted that, excluding the charge related to the export curbs for its China-specific H20 chip and its tax impact, the bottom-line results would have been $0.96. The company quantified the impact as $4.5 billion, below the $5.5 billion it had flagged earlier.

The results also exceeded the Finchat-compiled consensus estimates of $0.75 and $43.25 billion, respectively. 

The adjusted gross margin came in at 61%, and excluding the H20 charge, gross margin would have been 71.3%. In late February, the company had guided the metric to 70.6%-71%.

CEO Jensen Huang said, “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."

The executive also noted that Nvidia’s Blackwell NVL72 AI supercomputer was in full-scale production across system makers and cloud service providers.

The revenue performances at the business segments are as follows:

  • Data center: $39.1B (up 73% year over year and up 10% quarter over quarter) 
  • Gaming & AI PC: $3.8B (up 42% YoY and up 48% QoQ)
  • Professional visualization: $509M (up 19% YoY and flat with a year ago)
  • Automotive & Robotics: $567M (up 72% YoY but down 1% QoQ)

 

Data center revenue growth was driven by demand for Nvidia’s accelerated computing platform, which is used for large language models, recommendation engines, and generative and agentic AI applications.

Wedbush analyst Daniel Ives said, “The Godfather of AI, Jensen [Huang], and Nvidia delivered another robust quarter after the bell, handily beating the Street yet again.”

Shareholder Returns

Nvidia said its next quarterly dividend of $0.01 per share will be paid on July 3 to shareholders of record as of June 11.

Q2 Outlook

For the second quarter, the company guided to revenue of $45 billion, plus or minus 2%, which included $8 billion in H20 related charges, and adjusted gross margins of 72%, plus or minus 50 basis points. 

The chipmaker said it would work toward achieving gross margins in the mid-70% range late in 2025.

Analysts, on average, expect revenue of $45.66 billion for the quarter.

Ives noted that if not for the China chip curbs, the guidance for the quarter would have been $53 billion, speaking to the massive historic demand that Nvidia is seeing globally play out in this AI Revolution.

“This is a very positive result for Nvidia and the tech world after a Twilight Zone tariff battle that began in early April with Jensen & Co. caught in the Trump China tariff storm,” the analyst said.

Retail Upbeat

On Stocktwits, retail sentiment toward Nvidia stock was ‘extremely bullish’ (88/100) by late Wednesday, with the message volume at ‘extremely high’ levels.

NVDA sentiment and message volume as of 9:58 p.m. ET, May 28 | source: Stocktwits

A bullish watcher said he was holding onto his position in Nvidia.

Another user boldly predicted that Nvidia would hit $170 by June 13 as big deals go into production.

Nvidia’s stock is up 0.4% this year.

Following the first-quarter print, Larry Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report, said, “$140 is a key breakout level that we would like to see the stock close above in the next 2 days.”

He noted that from a technical perspective, the stock is on an uptrend, rising above the 20, 50, and 200-day moving averages.

Tentarelli is bullish on the Nvidia stock and has a year-end price target of $165.

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