Australian data centre stocks climb on Nvidia outlook
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More news: Australian data centre stocks advanced in morning trade after Nvidia, the world's largest chipmaker, reported better-than-expected results for the first quarter.
Data centre investors and operators HMC Capital (+3.6%), NextDC (+3.4%), Megaport (+1.8%) and DigiCo Infrastructure REIT (+1.7%) were four of the best performing ASX 200 companies by 11:25am AEST.
Shares in Nvidia, which saw first-quarter data centre revenue rise 73% year over year, jumped nearly 5% in after-hours trading on Wall Street.
Nvidia CEO Jensen Huang told investors he believed demand for AI computing is set to accelerate and that "countries around the world are recognising AI as essential infrastructure".
Nvidia shares rise as sales jump despite export hit
The news: Nvidia reported revenue of USD44.1 billion ($68.6 billion) for the first quarter of fiscal 2026, up 12% from the previous quarter and up 69% from a year ago, with data centre revenue of USD39.1 billion.
The forecast was in line with analysts’ estimates, according to data compiled by Bloomberg.
The numbers: The company incurred a USD4.5 billion charge in the quarter due to new US export licensing requirements for H20 products to China, resulting in USD2.5 billion in H20 revenue that could not be shipped, it said.
Nvidia’s outlook for fiscal Q2 reflects a loss in H20 revenue of approximately USD8 billion due to the recent export control limitations, it said. It expects total revenue to be USD45 billion, plus or minus 2%.
Gross margin for the first quarter was 60.5%, or 71.3% excluding the H20 charge, and diluted earnings per share were 76 US cents per share, or 96 US cents per share excluding the H20 charge.
Nvidia shares rose more than 2.5% in after-hours trading after the result.
The company announced full-scale production of its Blackwell NVL72 AI supercomputer and said it will pay a USD0.01 dividend per share on 3 July.
What they said: “Global demand for NVIDIA’s AI infrastructure is incredibly strong," Huang said in a statement released ahead of an investor briefing.
"AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate," he added.
"Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”
“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers,”
The source: Nvidia release
