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Nvidia’s chip sales jumped over 69% in the first quarter compared to last year, thanks to the AI boom. But despite the great numbers, Nvidia’s stock and other chipmakers took a hit in April after President Trump announced new tariffs and export restrictions.
Analysts say its strong set of results have "eased concerns" around tariffs - the future of which are uncertain after they were blocked by a federal court.
Wall Street stocks rose in early trading Thursday after a US court blocked many of President Trump's tariffs and Nvidia earnings boosted confidence.
Nvidia reported a huge $18.8bn (£13.9bn) in quarterly profits, and shares of the artificial intelligence leader climbed 6.4%.
"Global demand for Nvidia's AI infrastructure is incredibly strong," said the company's chief executive Jensen Huang in a press release.
He added that he expected demand for AI computing to "accelerate".
In April, Washington restricted the sale of Nvidia's China-specific "H20" chips, which led to a drop in demand. Nvidia said it had incurred a $4.5bn charge as a result - but its initial forecast for the impact on business was significantly higher at $5.5bn.
Mr Huang said on Wednesday he expected demand for AI computing to "accelerate".
Nvidia was the last major tech firm to report during a strong earnings season for tech companies whose shares have surged in recent weeks.
Changes in global trade policies also loomed large in the company's forecast.
New export controls and tariffs have increased the complexity and cost of its supply chain, and may continue to do so, the company said.
Nvidia said it planned to increase manufacturing in the United States to help tackle the issue.
Earlier this month, Mr Huang travelled with President Trump to the Middle East where the company said it would sell hundreds of thousands of its AI chips in Saudi Arabia.
Sales in Nvidia's key data centre business grew 73% on an annual basis.
