NVIDIA’s Q1 FY2025 Financial Report: Record $44.1 Billion Revenue, but Export Ban Squeezes Profit

Global AI chip giant NVIDIA (NASDAQ: NVDA) has released its Q1 FY2025 financial results, delivering an impressive revenue performance—$44.1 billion for the quarter, a 12% sequential increase and a massive 69% year-on-year surge, setting a new record high.

However, behind this strong revenue growth lies the significant impact of geopolitical tensions on its operations. Due to the U.S. export ban on chips to China, NVIDIA recorded a $4.5 billion charge from unsold H20 chip inventories, directly dragging down its GAAP gross margin from 71.3% to 60.5%. Earnings per share (EPS) fell from a potential $0.96 to $0.76 (adjusted EPS: $0.81).

Nonetheless, NVIDIA CEO Jensen Huang expressed confidence in global AI infrastructure demand in the earnings report. The next-generation Blackwell NVL72 AI supercomputer is now in full production, and AI inference token output has increased tenfold year-over-year. Many countries are treating AI as a strategic infrastructure as essential as electricity. This echoes the company’s “AI factory” vision, supported by record-high data center revenue of $22.6 billion this quarter.

Additionally, NVIDIA announced it will pay a quarterly dividend of $0.01 per share on July 3. Looking at its financial trajectory, NVIDIA’s revenue jumped from $26 billion in Q1 2024 to $39.3 billion in Q4 2024, and now surpassed $44 billion—showcasing the powerful momentum of the AI boom. Still, analysts caution that the $8 billion potential loss from the export ban this quarter remains a key risk.

Key Takeaways
🔍 Record revenue vs. profit headwinds: NVIDIA’s record-breaking revenue reinforces its unmatched position in the AI market, but the export ban-related inventory losses highlight its dependence on the Chinese market.

🔍 Long-term optimism in AI infrastructure: CEO Jensen Huang emphasized that “AI is the new infrastructure,” signaling the company’s continued focus on long-term growth.

🔍 Future watchpoints: How NVIDIA addresses the short-term impact of inventory losses and navigates geopolitical risks will shape its next phase of market valuation.