In the first quarter of 2025, NVIDIA reported impressive financial results, with revenue reaching $44.06 billion, a 69% year-over-year increase. Data center business contributed $39.1 billion, accounting for 88% of total revenue, demonstrating NVIDIA’s strong competitiveness in high-performance computing and artificial intelligence. Despite the outstanding performance, NVIDIA’s future development faces uncertainties amid complex international situations and market environments.
One highlight of NVIDIA’s earnings report is its latest chip based on the Blackwell architecture, utilizing advanced 4nm process technology, which significantly improves model training and inference performance. This not only strengthens the company’s product competitiveness but also consolidates its industry leadership. Additionally, NVIDIA plans to establish a supercomputer manufacturing base in the United States and actively expand global market cooperation, further growing its ecosystem.
However, NVIDIA faces considerable challenges. Due to U.S. export restrictions to China, the new generation H20 chip cannot be exported to the Chinese market. The company expects a revenue loss of approximately $8 billion in the next quarter and has made a $4.5 billion inventory impairment provision. As China is the largest AI market globally, policy changes there bring uncertainty to NVIDIA’s future earnings. Meanwhile, geopolitical tensions worldwide exacerbate supply chain and market volatility.
To address these challenges, NVIDIA is adjusting its global strategy by increasing investments in the United States and Europe, building sovereign computing infrastructure, and reducing dependence on a single market. At the same time, it continues to invest heavily in generative AI, large-scale models, and inference technologies to maintain its technological edge.
Artificial intelligence is profoundly transforming multiple industries, with enormous future potential:
Generative AI and Content Innovation: Advanced models driving digital transformation in entertainment, education, design, and more.
Intelligent Assistants and Automation: Wide application in enterprise operations, customer service, healthcare, enhancing efficiency and accuracy.
Edge Computing and IoT: Combined with 5G technology, extending computing power to edge devices, supporting smart cities and intelligent manufacturing.
Cross-industry Integration and Innovation: Deep AI integration with finance, healthcare, transportation, and education, spawning new business models and economic value.
Ethics, Security, and Sustainability: Ensuring AI systems are safe, fair, and transparent is a key focus as technology advances.
Overall, NVIDIA’s technological innovation and market performance highlight both the vast potential and challenges of the artificial intelligence industry. While short-term policy restrictions and market fluctuations pose risks, AI remains a core driver of technological and industrial transformation with a promising future. NVIDIA’s global strategy adjustments and technological investments will significantly influence the development trajectory of the entire sector.