%20has%20since%20dropped%2035%25.jpg "Nvidia dropped due to tariff - DevOm Pro")
Nvidia just dropped some jaw-dropping numbers for the first quarter, with chip sales soaring over 69% compared to last year. The U.S. tech giant’s high-powered chips are fueling the AI boom, and it’s paying off big time—they raked in a massive $18.8 billion in profits. After the news, Nvidia’s stock jumped 6.4%, and Wall Street got a nice boost Thursday morning as investor confidence roared back.
The company’s success comes despite a rough patch in April when President Trump’s new tariffs and tighter export rules tanked Nvidia’s stock, along with other chipmakers. A federal court recently put the brakes on those tariffs, which has analysts breathing a sigh of relief for now, though the future’s still murky. Nvidia’s CEO, Jensen Huang, shrugged off the chaos, saying global demand for AI tech is “incredibly strong” and only getting hotter.
Still, it hasn’t been all smooth sailing. New U.S. restrictions on Nvidia’s China-specific H20 chips hit hard, costing the company $4.5 billion—though that was less than the $5.5 billion hit they initially feared. Huang didn’t mince words, calling the U.S. export controls a “failure” that’s hurting American businesses more than intended. Adding to the drama, the Financial Times reported Trump’s pushing to block U.S. chip software sales to Chinese firms, aiming to slow China’s progress in building its own advanced chips.
Nvidia’s not sitting still, though. They’re planning to ramp up manufacturing in the U.S. to dodge some of the supply chain headaches caused by trade restrictions. Meanwhile, they’re cashing in on new markets, like Gulf countries, with Huang recently sealing a deal to sell tons of AI chips in Saudi Arabia during a trip with Trump.
Analysts like Dan Ives are calling Nvidia’s results a “huge win” for the tech world, especially after the tariff rollercoaster. But Emarketer’s Jacob Bourne warns that Nvidia’s got to navigate a tricky mix of geopolitics, competition, and economic shifts to stay on top. For now, though, Nvidia’s riding high, with its data center business alone growing a whopping 73% year-over-year. As Huang put it, AI is becoming as vital as electricity or the internet—and Nvidia’s right at the heart of it.