Nvidia reported strong results despite a multibillion-dollar hit tied to U.S. regulations on sales of its AI chip to China.

Nvidia weathered a storm of tariff uncertainty and export controls to exceed Wall Street’s lofty expectations for sales when the AI chip behemoth reported quarterly earnings Wednesday. The hit to profits and margins came in worse than expected,

Nvidia topped earnings expectations in its most recent quarter as AI chip demand continues to fuel growth for the company despite concerns about mounting U.S.-to-China export restrictions. Why it matters: Nvidia has become a bellwether stock for the AI economy as tech companies invest heavily in product development and data center capability,