06:54 AM EDT, 05/29/2025 (MT Newswires) -- Nvidia ( NVDA ) shares rose early Thursday as it recorded better-than-expected fiscal first-quarter results, but the tech bellwether provided a revenue outlook below market estimates at the midpoint for the ongoing three-month period amid the US government's new export licensing requirements.

The chipmaker anticipates revenue of $45 billion, plus or minus 2%, for the second quarter, it said late Wednesday. The guidance reflects a revenue loss of about $8 billion tied to new US export controls on sales of the company's H20 chips to China. The current consensus on FactSet is for $46 billion.

The US government informed Nvidia ( NVDA ) on April 9 that it required a new license to export H20 products to China, days after President Donald Trump's announcement of sweeping new reciprocal tariffs on several countries. Earlier this month, the US and China agreed to suspend most duties on each other's goods for 90 days.

"We are still evaluating our limited options to supply data center compute products compliant with the US government's revised export control rules," Chief Financial Officer Colette Kress said during an earnings call, according to a FactSet transcript. "Losing access to the China (artificial intelligence) accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward and benefit our foreign competitors in China and worldwide."

Nvidia ( NVDA ) would have "handily beaten" the consensus for the second quarter if it weren't for the $8 billion in lost H20 chip sales in the period, Truist Securities said in a client note. The chipmaker appears hopeful about selling to the Chinese market in the future, while its global demand is strong enough to temporarily offset the impact of export controls.

The company generated $4.6 billion in H20 revenue in the first quarter, but recognized a $4.5 billion charge to write down inventory and purchase obligations linked to orders it had received before April 9, Kress said on the call.

Nvidia ( NVDA ) reported adjusted earnings of $0.81 a share for the three months through April 27, up from $0.61 the year before, topping the Street's view for $0.74. Excluding the $4.5 billion charge and related tax impact, adjusted EPS came in at $0.96. Revenue jumped 69% to $44.06 billion, exceeding the average analyst estimate of $43.33 billion.

The stock gained 6.6% in the most recent premarket activity.

Sales from the company's data center business soared 73% to $39.11 billion in the first quarter, with its generative AI system Blackwell contributing nearly 70% of compute revenue, Kress told analysts. For the second quarter, the company expects the continued ramp of Blackwell to be partially offset by a decline in China revenue, according to Kress.

Gaming segment revenue jumped to $3.76 billion from $2.65 billion in the prior-year quarter due to sales of its Blackwell architecture, the company said. Sales in the automotive division surged 72% to $567 million, boosted by the firm's self-driving platforms, while professional visualization revenue grew 19% on a yearly basis.