NVIDIA reports record USD 81.6 billion first quarter revenue; Projects USD 91.0 billion for second quarter
New Delhi, May 21
Nvidia reported a record revenue of USD 81.6 billion for the first quarter of FY27, representing an 85 per cent increase from the same period last year. The financial results showed a 20 per cent sequential growth from the previous quarter.
According to Nvidia, the growth was primarily driven by its data center business, which generated a record USD 75.2 billion in revenue during the quarter. This marked a 92 per cent increase from the previous year and a 21 per cent rise from the prior quarter. Under its previous sub-market classifications, data center compute revenue reached USD 60.4 billion, while data center networking revenue grew 199 per cent year-over-year (YoY) to hit USD 14.8 billion.
The company, in a press release, said that it is now transitioning into a new reporting structure divided into two primary market platforms: Data Center and Edge Computing. The Data Center segment will further split into Hyperscale--covering public clouds and large consumer internet firms--and ACIE, which encompasses AI Clouds, Industrial, and Enterprise.
Meanwhile, the Edge Computing platform will track devices processing data for agentic and physical AI, including personal computers, robotics, workstations, and automotive technologies.
"The buildout of AI factories -- the largest infrastructure expansion in human history -- is accelerating at extraordinary speed," said Jensen Huang, founder and CEO of NVIDIA.
"Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced -- from hyperscale data centers to the edge," Huang added.
Financially, Nvidia posted a GAAP (Generally Accepted Accounting Principles) gross margin of 74.9 per cent and a non-GAAP gross margin of 75.0 per cent for the quarter. GAAP earnings per diluted share stood at USD 2.39, while non-GAAP earnings per diluted share were reported at USD 1.87.
During the three-month period, Nvidia returned approximately USD 20.0 billion to its shareholders through dividends and share repurchases. Following the conclusion of the quarter, the company authorized an additional USD 80.0 billion for its stock buyback program.
Furthermore, the board approved an increase in the quarterly cash dividend from USD 0.01 to USD 0.25 per share, scheduled for payment on June 26, 2026.
Looking ahead to the second quarter of fiscal 2027, Nvidia projected its revenue to reach approximately USD 91.0 billion, plus or minus 2 per cent. "Revenue is expected to be $91.0 billion, plus or minus 2%. NVIDIA is not assuming any Data Center compute revenue from China in its outlook," the company said.
The company also anticipated second-quarter GAAP and non-GAAP gross margins to remain steady at 74.9 per cent and 75.0 per cent, respectively, while estimating full-year tax rates to fall between 16.0 per cent and 18.0 per cent.
— ANI
Reader Comments
Meanwhile, startups in Bangalore are still struggling to get even a single H100 GPU. 😅 The Jensen Huang quote about 'AI factories being the largest infrastructure expansion in human history' is spot on, but we need to ensure India doesn't get left behind in this race.
Incredible growth, but let's be real: they already said they're not assuming any Data Center revenue from China. That's a huge chunk of the global market. So where's the rest coming from? Probably hyperscalers in the US, but I hope Indian IT firms like TCS and Infosys are also placing big orders.
Insider buying? Nope, it's all about buybacks. Dividend hike from 1 cent to 25 cents is nice, but $80 billion buyback? That's just shifting value to existing shareholders rather than investing more in R&D. Feels like they're confident they've already won. Let's hope they don't get complacent.
75% gross margins is insane for a hardware company! Jensen really is the Oppenheimer of our era. But seriously, this spike in data center networking revenue (199% YoY!) tells me that interconnect tech is becoming even more critical than the GPUs themselves. Our Indian data center builders should take note.
As an Indian consumer, I welcome the agentic AI era but worry about jobs. 😕 Great that Nvidia is doing well, but we need policies to help our workforce adapt. Otherwise, this 'largest infrastructure expansion' will just replace call centers and accountants here.
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