Nvidia (NASDAQ:NVDA) shares fell more than 2% on Thursday after the chipmaker posted quarterly results that beat expectations but reported weaker-than-expected data center revenue, raising concerns about momentum in the AI sector.
For the fiscal first quarter, Nvidia reported adjusted earnings of $1.04 per share on revenue of $46.7 billion, ahead of estimates of $1.01 and $46.1 billion, respectively. Data center revenue came in at $41.1 billion, short of forecasts of $41.34 billion.
The results underscored challenges facing AI chipmakers amid U.S. export restrictions to China. Nvidia confirmed that limitations on sales of its H20 chip to China had weighed on performance.
Looking ahead, the company guided fiscal Q2 revenue of $54 billion, above consensus of $52.76 billion, though the forecast excludes contributions from restricted China shipments.
Investors, who view Nvidia as a bellwether for the AI boom, expressed concern over whether growth in the sector is beginning to plateau or simply facing geopolitical pressures. The earnings miss in its data center unit, despite strong overall results, sparked renewed scrutiny of AI-driven valuations.
