Nvidia’s Strong Q1 Earnings Drive Stock Jump, AI Tokens See Modest Gains

Nvidia, a leading player in artificial intelligence (AI) and semiconductors, released its Q1 2026 fiscal earnings report for the quarter ending April 27, 2025.

Following the announcement, Nvidia’s stock (NVDA) climbed 4.8% in post-market trading. Meanwhile, AI tokens also saw a modest boost of 0.6%.

Nvidia Q1 Earnings: Revenue Soars 69%, Income Increases 26% 

The earnings report released on May 28, 2025, revealed that Nvidia achieved quarterly revenue of $44.1 billion. This represented a 69% yearly increase and a 12% rise over the prior quarter.

Furthermore, net income grew 26% over the year to $18.7 billion. Nvidia’s Data Center segment led the growth, generating $39.1 billion in revenue.  

That was up 10% from the prior quarter and 73% year-over-year. The segment also made up 88% of total revenue. Nvidia reported a non-GAAP gross margin of 61% for the first quarter of fiscal 2026.

The firm noted that this would have been 71.3% if not for a $4.5 billion charge related to export licensing restrictions affecting its H20 products connected to China. The charge also reduced non-GAAP earnings per share from a potential $0.96 to $0.81.

Despite this, Nvidia’s CEO, Jensen Huang, highlighted that the worldwide demand for the company’s AI infrastructure continues to be very high.

“AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. 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,” he said.

The report positively influenced Nvidia’s stock performance. According to Yahoo Finance, the stock closed at $134.8, down 0.51%. However, in after-hours trading, the price rose sharply to $141.3, gaining 4.8%.

Nvidia (NVDA) Stock Performance. Source: Yahoo Finance

The positive results had a ripple effect on the AI-related tokens. Nevertheless, the gains were tempered compared to the market reaction observed around Nvidia’s Q4 earnings report. BeInCrypto reported that several tokens saw double-digit surges.

However, according to CoinGecko, the AI token sector only saw a modest 0.6% increase in market capitalization over the past 24 hours. Seven of the top ten AI tokens recorded small gains. 

NEAR Protocol (NEAR) and Artificial Superintelligence Alliance (FET) both rose by over 5%. Meanwhile, Grass (GRASS) experienced the sharpest drop of 5.7%. 

AI Tokens Market Performance. Source: CoinGecko

Despite the underwhelming performance, the AI token market’s restrained reaction isn’t too surprising, given the decline that followed Nvidia’s GPU Technology Conference (GTC). BeInCrypto highlighted that the sector declined 2.8% after the CEO’s keynote.