Nvidia sees 94% surge in Q1 sales: Chipmaker reports strong AI-driven growth

Chipmaker Nvidia reported stronger-than-expected results for the January quarter on Wednesday. The company also projected current-quarter revenue above market estimates, fueled by strong spending on artificial-intelligence processors by Big Tech companies.The company posted sales of $68.13 billion for the quarter, up 94% from a year ago, exceeding analysts’ estimate of $66.21 billion. Adjusted earnings came in at $1.62 per share, above the expected $1.53 per share. For the current fiscal first quarter, Nvidia forecasts sales of $78 billion, compared with the analysts’ average estimate of $72.6 billion.CEO Jensen Huang said that AI-generated output will form the foundation of future computing and the company will continue to invest in infrastructure to support this growth. CFO Colette Kress added that the company plans to reinvest its projected $100 billion cash flow this year into developing the AI ecosystem rather than returning it to shareholders, according to Reuters. Nvidia also addressed concerns over supply constraints at its chip maker TSMC, confirming it has enough inventory and capacity to meet demand for several upcoming quarters. However, the company cautioned that the shortage may affect its gaming business.The company’s revenue remains concentrated among a few clients, with two customers accounting for 36% of total sales in fiscal 2026, slightly higher than 34% in the previous year. Competition is increasing as rivals such as AMD plan new AI servers and Google supplies chips to Anthropic and potentially Meta.Nvidia highlighted that its current-quarter forecast does not include expected revenue from China. The US government recently issued licenses allowing the shipment of small amounts of H200 chips to Chinese customers, easing previous export restrictions. The company also announced it will include stock-based compensation in its non-GAAP measures to attract and retain top AI engineers and researchers.Despite the strong results, Nvidia’s stock traded flat in after-hours trading, as investors had anticipated robust numbers given the company’s 14-quarter streak of revenue beats. Analysts said that much of the growth was already priced into the stock.