Nvidia Posts Record Revenue as AI Demand Surges

Nvidia reported another record quarter, with sales and profits beating expectations and showing no slowdown in the artificial intelligence boom.

The company is a central player in AI infrastructure, supplying chips to leading developers including OpenAI and Meta. Its results are closely watched.

First-quarter revenue rose 85 percent from a year earlier to $81.6 billion, while net income more than tripled to $58.3 billion.

Shares fell 1.6 percent in after-hours trading. Analysts said investors have grown used to strong results and expressed some concern about growing competition.

Nvidia is the world's most valuable company, with a market value of about $5.3 trillion.

Sales were driven by strong growth in its data centre division. The company forecasts spending on AI infrastructure will reach between $3 trillion and $4 trillion a year by the end of the decade.

"Demand has gone parabolic," chief executive Jensen Huang told analysts on a conference call. "The reason is simple: the era of agentic AI is here."

Ruth Foxe-Blader, managing partner at Citrine Venture Partners, attributed the share drop to a law of large numbers. "Nvidia represents 8 percent of the S&P 500," she said. "Unless there's a belief in this continued parabolic growth it's difficult for investors to get super excited, although Nvidia posted outstanding numbers."

Victoria Scholar, head of investment at interactive investor, said the results were strong but the bar is very high for the AI bellwether. "Investors bought the rumour, sold the fact as shares had already rallied ahead of earnings," she added.