Nvidia delivered a blockbuster first quarter with sales reaching $81.6 billion, an 85% increase year-over-year that easily topped analyst expectations. The chip giant's performance reflects surging demand for data-center computing and the explosive growth of artificial intelligence agents, with networking hardware sales tripling to $14.8 billion.

Nvidia recently launched specialized servers to help AI models run faster, including one using technology from startup Groq, which the company acquired for $20 billion in December. CEO Jensen Huang projects the company will sell $1 trillion worth of its Blackwell and Rubin GPUs by the end of 2027, capitalizing on the proliferation of autonomous AI tools.

The company reported net income of $58.3 billion, more than triple the previous year's result, while maintaining gross margins at 75%. Nvidia raised its guidance for the current quarter to $91 billion in sales, indicating continued strength in the AI chip market despite concerns about sustainability of such explosive growth.