NVIDIA started fiscal 2026 with a strong first quarter, achieving record revenue and solid earnings. Despite facing U.S. export restrictions on its H20 AI chips to China, the company generated $44.1 billion in revenue for the quarter ending April 27, 2025. This marks a 12% increase from the previous quarter and a substantial 69% rise from last year.
As the AI race heats up, NVIDIA stands out as a leader in both technology and sustainability.
NVIDIA Revenue Hits Record as AI Demand Surges
The GPU giant’s first-quarter results confirm its leadership in AI computing. The data center business keeps growing. This growth comes from high demand for AI chips from big tech companies like Microsoft, Alphabet, and Meta.
Jensen Huang, founder and CEO of NVIDIA, noted,
“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers. Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure, just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”
China Ban Triggers $4.5 Billion One-Time Charge
On April 9, 2025, the U.S. government informed NVIDIA that it needed a license to export its H20 chips to China. This unexpected news resulted in a $4.5 billion charge for the quarter, linked to excess inventory and purchase obligations. H20 sales before the restrictions reached $4.6 billion. However, NVIDIA had to withhold another $2.5 billion in revenue due to the export ban.
Even with this challenge, the core business remained robust. Excluding the China-related charge, NVIDIA would have posted a non-GAAP gross margin of 71.3%. Including the charge, the actual gross margin was 61.0% for the quarter.
Furthermore, investors also reacted positively. The chip maker’s shares rose 4–6% in after-hours trading. Despite export limits, the company’s growth eased market worries. Analysts expect this momentum to continue as AI demand remains high.
Q2 Revenue Outlook Stays Strong
For Q2 of fiscal 2026, NVIDIA predicts revenue of $45 billion, plus or minus 2%. This forecast includes an expected $8 billion hit from ongoing U.S. export restrictions to China. Despite this hurdle, the company is moving forward with strategic plans, including expanding U.S. manufacturing and forming new deals in the Middle East.
From these results, it’s clear that NVIDIA continues to thrive in the AI boom. Its hardware supports large-scale AI models, data centers, and cloud platforms. New chips and partnerships with hyperscale customers drive ongoing revenue growth.
NVIDIA’s Energy-Efficient Tech Cuts Carbon Emissions
NVIDIA’s sustainability goals focus on its energy-efficient hardware and infrastructure. Its Blackwell GPUs are 20 times more energy-efficient than traditional CPUs for AI tasks. These GPUs help customers lower power use and emissions while boosting performance.
Also, the company’s data processing units (DPUs) reduce energy consumption by 25% by offloading specific tasks from CPUs.
DOE Tests Show 5x Energy Efficiency with GPUs
The U.S. Department of Energy (DOE) tested GPU-based systems on the Perlmutter supercomputer. Results showed that NVIDIA’s GPUs delivered five times greater energy efficiency than CPU-only systems. These savings can reduce energy costs and prevent 588 megawatt hours of electricity use each month. This means lower power bills and smaller carbon footprints for high-performance computing tasks.
Sustainability Targets on Track for 2025
- In FY24, NVIDIA’s total greenhouse gas emissions were 3.69 million metric tons of CO2 equivalent.
The company is actively working to reduce its footprint through renewable energy sourcing and supplier engagement.
NVIDIA’s broader climate strategy includes cutting Scope 1 and Scope 2 emissions. The company tracks its carbon footprint throughout the product lifecycle, from design to production to deployment.
A key goal is to power all offices and data centers with 100% renewable electricity by the end of this year. The company aims to eliminate its market-based Scope 2 emissions with this approach.
Scope 3 Strategy Engages Key Suppliers
By the end of FY26, the company expects to engage suppliers responsible for at least 67% of its Scope 3 Category 1 emissions. These suppliers will be urged to adopt science-based emissions reduction targets.
NVIDIA’s strong earnings, rising AI demand, and clear plan for low-carbon operations keep it at the forefront of innovation and climate action. Its next steps in AI infrastructure, global manufacturing, and renewable energy will shape the future of smart, sustainable computing.
