SAN FRANCISCO (AP) — Artificial intelligence technology bellwether Nvidia overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth amid feverish demand for its high-powered chips that are making computers seem more human.
The results announced Wednesday for the February-April period came against a backdrop of President Donald Trump’s on-again, off-again trade war that has whipsawed Nvidia and other Big Tech companies that have been riding AI mania to propel both their revenue and stock prices increasingly higher.
But Trump’s fusillade of tariffs — many of which have been reduced or temporarily suspended – hammered the market values of Nvidia and other tech powerhouses heading into the springtime earnings season as investors fretted about the trade turmoil dimming the industry’s prospects.
Those worries have eased during the past six weeks as most Big Tech companies lived up to or exceeded the analyst projections that steer investors, capped by Nvidia’s report for its fiscal first quarter.
Nvidia earned $18.8 billion, or 76 cents per share, for the period, a 26% increase from the same time last year. Revenue surged 69% from a year ago to $44.1 billion. If not for a $4.5 billion charge that Nvidia absorbed to account for the U.S. government’s restrictions on its chip sales to China, Nvidia would have made 96 cents per share — far above the 73 cents per share, excluding certain items envisioned by analysts.
The performance helped Nvidia’s shares by gaining nearly 4% in extended trading after the numbers came out. Nvidia’s stock price ended Wednesday’s regular trading session at $134.81, just slightly below where it stood before Trump’s Jan. 20 inauguration. The price had plunged to as low as $86.62 last month during a nosedive that temporarily erased $1.2 trillion in shareholder wealth.
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