{"id":684405,"date":"2026-05-21T04:00:14","date_gmt":"2026-05-21T04:00:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/684405\/"},"modified":"2026-05-21T04:00:14","modified_gmt":"2026-05-21T04:00:14","slug":"tech-giant-nvidia-reports-growth-of-85-per-cent-due-to-the-construction-of-ai-factories","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/684405\/","title":{"rendered":"Tech giant Nvidia reports growth of 85 per cent due to the construction of AI factories"},"content":{"rendered":"

The world’s most valuable company, tech giant Nvidia, has reported a record revenue of $US81.6 billion ($114.17 billion) in its first-quarter results, up 85 per cent on the same time a year ago.<\/p>\n

However, its second-quarter sales forecast has left investors unimpressed, despite exceeding Wall Street expectations by billions.<\/p>\n

It forecasts revenue of $US91 billion in June, compared with estimates of $US86.84 billion.<\/p>\n

The company is headquartered in California and has a market cap of $US5.4 trillion.<\/p>\n

“The buildout of AI factories \u2014 the largest infrastructure expansion in human history \u2014 is accelerating at extraordinary speed,” said Nvidia’s CEO, Jensen Huang, in a statement.<\/p>\n

“Agentic AI has arrived, doing productive work, generating real value, and scaling rapidly across companies and industries.”\"Huang<\/p>\n

Jensen Huang says AI factories are “the largest infrastructure expansion in human history”. (Reuters: Mike Blake)<\/p>\n

The results are driven by the company’s AI chips, which dominate data centres across the globe.<\/p>\n

Data centre revenue hit a record $US75.2 billion, up 92 per cent from a year ago.<\/p>\n

Experts say the reaction from investors has been ‘tepid’ so far<\/p>\n

“A typical beat from the company, with the outlook strong amid a relentless AI build-out,” said senior financial analyst Kyle Rodda at capital.com.<\/p>\n

\"Kyle<\/p>\n

Market analyst Kyle Rodda says investors have become used to Nvidia’s strong results. (ABC News: The Business)<\/p>\n

“It was a garden variety beat, a better-than-expected top and bottom line with guidance above the street estimate, and one that was well telegraphed following the very strong results from AI hyperscalers earlier in the earnings season.”<\/p>\n

Nevertheless, Mr Rodda believes investors have become all too used to Nvidia’s strong results.<\/p>\n

“So far, Nvidia shares are only a fraction lower off the back of its results, with futures barely moving, adding or subtracting little from Wall Street’s overnight lead for Asia,” he said.<\/p>\n

In after-hours trading the stock eased, up +1.1 per cent to $US221.05.<\/p>\n

“Technically, we think Nvidia completed a fifth-wave advance (Elliott Wave) at last week’s $US236.54 high and it should see a pullback toward the $US200 support zone,” said IG market analyst Tony Sycamore.<\/p>\n

\"A<\/p>\n

IG Australia markets analyst Tony Sycamore says investors wanted “fireworks” in the results. (ABC News: Daniel Irvine)<\/p>\n

That is despite the company confirming it would increase its quarterly cash dividend to 25 cents per share, up from 1 cent, as well as announcing $US80 billion in stock repurchases.<\/p>\n

Mr Sycamore said it could be the lull in Nvidia’s new market.<\/p>\n

“The lack of any China sales in the outlook and guidance that was only modestly ahead of expectations left some investors wanting a bit more fireworks,” he said.Trade with China has stalled<\/p>\n

Earlier this year, Nvidia received conditional approval<\/a> to sell one of its powerful AI chips, the H200, to China.<\/p>\n

\"Four<\/p>\n

Experts believe investors have become all too used to Nvidia’s strong results.<\/p>\n

\u00a0 (AP Photo: Mahesh Kumar A., file)<\/p>\n

It means H200 can be exported to China as long as third-party testing takes place and it does not interfere with supply in the US.<\/p>\n

China will not be allowed to use the chips for military purposes and is not able to import more than 50 per cent of the chips sold to US customers.<\/p>\n

But so far, there has been no movement on this front.<\/p>\n

The US blocked shipments of the most advanced computer chips to China last year during a tit-for-tat trade war.<\/p>\n

Beijing hit back by cutting off supplies of rare earth minerals.<\/p>\n

\"A<\/p>\n

Donald Trump has approved exports of some Nvidia chips to China. (Reuters: Evelyn Hockstein)<\/p>\n

Despite President Trump approving the China market, Nvidia’s chief financial officer, Colette Kress, said it was unclear whether imports of the H200 would be allowed into the country.<\/p>\n

Nvidia’s most advanced chips, Blackwell and the upcoming Rubin, are not approved for export to China.<\/p>\n

Last week, Jensen Huang joined Elon Musk and President Trump on Air Force One<\/a> for a trip to China.<\/p>\n","protected":false},"excerpt":{"rendered":"The world’s most valuable company, tech giant Nvidia, has reported a record revenue of $US81.6 billion ($114.17 billion)…\n","protected":false},"author":2,"featured_media":684406,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,329925,329928,329926,11710,2458,186,7929,203,329927,2291,88006,329929,6654,5464,5473,93995,1996,105],"class_list":["post-684405","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-billions","tag-billions-in-profit","tag-computer-applications","tag-computer-chips","tag-data","tag-finance","tag-investors","tag-mobile","tag-multinational-technology","tag-nvidia","tag-profits","tag-quarter-results","tag-results","tag-shares","tag-stock","tag-stock-price","tag-tech","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/684405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=684405"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/684405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/684406"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=684405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=684405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=684405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}