Nvidia Q1 Earnings

Nvidia stock climbed around 5% on Thursday following the company's release of its First Quarter 2026 results. The company is a dominant player in the artificial intelligence (AI) world, and even though there were some soft numbers in the report, investors are optimistic about where Nvidia is headed.

Nvidia makes powerful computer chips that help power AI software, including that used by major tech companies like Microsoft, Amazon, and Meta. The companies have been heavily investing in AI, and they keep using Nvidia's chips to power their technology.

In the first quarter of the year, Nvidia garnered $44.1 billion in revenues, beating analyst expectations. This was also above the $26 billion that the company earned in the same period last year. Nvidia earned $0.96 per share, above analysts' expectations of $0.93 and significantly higher than the $0.61 it earned last year.

However, revenue from Nvidia's data center business was slightly lower than expected. At $39.1 billion, it fell just short of the estimated $39.2 billion. The other issue is an export restriction in the United States. The government has put restrictions on Nvidia selling some of its chips to China, one of the biggest markets for technology products.

Due to these restrictions, Nvidia expects to lose around $8 billion in revenue during the second quarter. The company has already lost $15 billion in revenue because of these constraints. Nvidia's CEO Jensen Huang said it would be difficult to sell its highest level of chips in China in the future, but the company is looking for limited ways to stay in the market.

Despite these setbacks, Nvidia remains a leader in the AI space. Its new generation of chips is being rolled out, and demand from major tech companies is still strong. Investors are focusing more on Nvidia’s long-term growth in AI rather than the short-term impact of export issues.