Nvidia’s (NVDA) first-quarter income rose to a document excessive, topping analysts’ expectations, however earnings missed because the chipmaker took successful from new export curbs.

Nvidia reported adjusted earnings of 81 cents per share on income that jumped 69% year-over-year to a document $44.06 billion. The features got here as gross sales from Nvidia’s knowledge heart phase, representing the majority of the corporate’s income, grew 73% to a document $39.1 billion. (Investopedia’s reside protection of the outcomes is here.)

“International demand for NVIDIA’s AI infrastructure is extremely sturdy,» CEO Jensen Huang mentioned in a launch, including “AI inference token technology has surged tenfold in only one 12 months, and as AI brokers develop into mainstream, the demand for AI computing will speed up.”

Nvidia’s quarterly gross sales exceeded analysts’ estimates compiled by Seen Alpha, however earnings didn’t, as the corporate mentioned it absorbed a $4.5 billion cost within the interval on account of restrictions on the sale of its H20 chips to China, lower than the $5.5 billion the corporate mentioned it anticipated final month. With out the cost and associated tax influence, Nvidia mentioned it might have reported EPS of 96 cents, above estimates.

Within the present quarter, Nvidia mentioned it expects to take an $8 billion hit on account of misplaced income from H20 gross sales. The chipmaker projected quarterly income of $45 billion, plus or minus 2%, and barely beneath Road expectations.

Shares of Nvidia surged over 5% to simply above $141 in after-hours buying and selling following the outcomes, its highest stage since February. If Nvidia can maintain these features, it may surpass Microsoft (MSFT) tomorrow because the world’s most dear firm by market capitalization.

This text has been up to date because it was first printed to incorporate further data and mirror more moderen share worth values.