Nvidia posted $96.2 billion in quarterly revenue, up 106% year over year, with Data Center sales alone reaching $89 billion. Days later, the Trump administration is reportedly weighing broader semiconductor tariffs that could strip away the data-center exemption Nvidia has relied on, a change that would hit the company harder than rivals with their own US fabrication capacity.
Nvidia just posted $96.2 billion in quarterly revenue. That's up 106% from a year earlier and 18% from the previous quarter. Data Center revenue alone climbed to $89 billion, a 117% year-over-year increase.
Those results have already lifted Nvidia shares, with investors again more upbeat about the AI infrastructure cycle having legs. But another development followed almost immediately.
The Trump administration is mulling a wider set of semiconductor tariffs that could reach not just imported chips but also laptops, gaming consoles and data-center servers built with them, Reuters reported. The idea remains under discussion and could still change substantially before anything is finalized.
Data Center now drives nearly all of Nvidia's business
Nvidia's Data Center division made up 92.5% of total company sales in the latest quarter, tying its fortunes closely to the servers and networking gear that cloud providers and AI labs are building. That $89 billion in quarterly Data Center revenue is nearly double the $46.7 billion Nvidia generated in total revenue one year earlier.
Nvidia also maintained a 75% gross margin, with GAAP earnings of $2.46 per diluted share. Non-GAAP earnings came to $2.22 per share.
The existing tariff already carves out data centers
The White House imposed a 25% tariff on advanced computing chips in January, naming Nvidia's H200 and AMD's MI325X specifically. That order exempted chips used in US data centers, research and development, startups, and certain consumer and industrial uses, which could keep most of Nvidia's US demand relatively shielded if it stays in place.
MarketWatch reported the plan under review could remove that data-center exemption, which would matter most to Nvidia since most of its leading chips are manufactured overseas. Intel, by contrast, runs its own fabrication plants and has been expanding US manufacturing capacity, though that doesn't automatically make it a winner given how tangled semiconductor supply chains are.
Investors now have two figures to track
The first is Nvidia's growth, which just posted one of the best quarters in the chip giant's history. The second is the eventual tariff rate and, more importantly, which products and uses stay exempt.
A 25% tariff that still exempts US data centers looks very different from one that reaches servers built with imported chips. Cloud businesses and their suppliers would then have to decide how much of that added cost gets passed through to customers.
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