Nvidia posts robust profit in first quarter of FY26

Artificial Intelligence (AI) chip maker Nvidia’s profit in the first quarter of FY26 increased year-on-year (y-o-y) by 26% to $18.775 billion. Its revenue in the quarter increased y-o-y by 69% to $44 billion. Gross profit margin of the company in the quarter stood at 60.5%.

Demand for its AI chips remains strong

The sharp increase in revenue in the quarter indicates that demand for its AI chips remains strong. The company took a charge in the quarter for the new export licensing requirement for export of its H20 products to China. The company said that its NVL72 AI supercomputer is now in full scale production.

Nvidia is among the leaders in the production of AI chips. Its graphical processing unit AI chips remain in strong demand. The company’s stock saw some hit when DeepSeek made it’s AI product with fewer chips.

Nvidia’s stock ended the day yesterday, 27^th May, 2025, at $134.81, down by 0.51%. The stock has lost 2.53% year-to-date in 2025. Its 52-week high price currently is $153.13.

Nifty IT index at NSE is up by 1.37% at 11:53 a.m. 29^th May, 2025. There is expectation that many Indian IT and software companies will benefit from the increase in usage of AI software. The jump in revenues of Nvidia indicates that AI usage is increasing.

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Source: Nvidia