Nvidia's revenue rockets to $44.1bn

Little effect seen from new rules on China

- TRIPP MICKLE

Nvidia's business prospects have been whipsawed by the US government lately. Last month, the government blocked the sale of artificial intelligence chips to China. Weeks later, it approved the sale of similar chips to the Middle East.

Amid the turmoil, Nvidia still maintained its breakneck growth as the leading provider of the computer chips used for building AI.

Nvidia said Wednesday that sales in its most recent quarter rose 69% from a year earlier to $44.1 billion. Its net income rose 26% to $18.78 billion. The company exceeded Wall Street's expectations for sales of $43.28 billion, but fell short of predictions for a profit of $19.49 billion.

Nvidia's revenue and profit rose even though, it said Wednesday, the Trump administration's restrictions on chips to China would cost it $4.5 billion, $1 billion less than it estimated in mid-April.

The restrictions have pushed Nvidia out of the market for AI chips in China, the world's largest buyer of semiconductors, which are used to power smartphones, cars and other electronics.

Nvidia also projected that revenue in the current quarter would rise 50% from a year ago to $45 billion, as it expands sales of its newest AI chip, Blackwell. The sales forecast is in line with Wall Street's prediction of $45.75 billion, suggesting that the tech industry's embrace of Al is in its early stages, with ample room to run.

Shares in Nvidia rose more than 4% in after-hours trading. It finished the trading day as the second-most-valuable company in the world behind Microsoft and ahead of Apple, with a market value of $3.3 trillion.