Nvidia has been riding a rollercoaster lately, thanks to shifting U.S. government policies. Just last month, Washington blocked the company from selling its cutting-edge AI chips to China, the world’s largest semiconductor market. Then, in a surprising twist, it gave the green light for similar sales to countries in West Asia.
Despite the policy whiplash, Nvidia continues to surge ahead. The chipmaker reported a 69% jump in sales for the latest quarter, reaching $44.1 billion. Net income climbed 26% to $18.78 billion. While those earnings missed Wall Street’s profit forecast of $19.49 billion, they still beat revenue expectations of $43.28 billion.
Even with the hit from the U.S. restrictions on China, which Nvidia now estimates will cost it around $4.5 billion, less than its earlier $5.5 billion forecast, the company’s financial momentum hasn’t stalled. The restrictions have effectively shut Nvidia out of the Chinese AI chip market, a key player in global tech, especially for powering devices like smartphones and smart cars.
“Every nation now sees AI as core to the next industrial revolution,” Nvidia CEO Jensen Huang said on a call with analysts, underscoring the global stakes of the AI race.
To reduce its dependence on tech giants like Microsoft, Amazon, Google, and Meta, Nvidia is expanding its reach. The company is looking to grow its footprint in Europe and across Asia, including West Asia, where governments are beginning to treat AI infrastructure as strategically important, much like telecommunications networks.
One major sign of that shift: OpenAI is planning a 200-megawatt AI data center in Abu Dhabi that could house as many as 100,000 Nvidia chips by next year.
“We’re going to keep our supply chain quite busy for many more years,” Huang said.
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