Nvidia Q1 Result: AI Chipmaker Sees Record Revenue Jump Amid AI Boom, Profit Surges To $58.3 Billion

Nvidia reported another strong quarter, with profit and revenue soaring on heavy demand for artificial intelligence chips. For the first quarter of fiscal 2027, which ended on 26 April, the company again beat Wall Street forecasts. Investors focused on how far Nvidia's data centre business and planned shareholder payouts might shape the wider technology and chip markets.

Net profit for the quarter climbed to $58.3 billion, or $2.39 per share, sharply higher than $18.8 billion, or the earnings reported a year earlier. On an adjusted basis, excluding one-off items, Nvidia posted earnings of $1.76 per share. Analysts polled by FactSet had expected $1.75 per share, so the company delivered a small earnings beat.

Nvidia Q1 Earnings and record revenue from AI chips

Revenue also set a new high. Nvidia generated sales of $81.62 billion in the first quarter, compared with $44.01 billion in the same period last year. That marked an 85% year-on-year rise. Market expectations were lower, with analysts looking for revenue of $78.91 billion. The performance strengthened Nvidia's position as the world's most valuable listed company.

The company's gains were driven mainly by high-end AI processors that power large language models and other advanced systems. Tech platforms and enterprise customers continued to build AI infrastructure, and Nvidia remained a central supplier. The Santa Clara, California-based firm has become a key provider of graphics processing units used in data centres worldwide.

Nvidia Q1 Earnings driven by data center demand

The data centre segment again dominated Nvidia's operations during the quarter. Revenue from that unit, which includes the core GPUs used for AI training and inference, reached $75.2 billion. That figure represented a 92% jump from the level reported a year earlier. The strength underscored how cloud providers and technology companies are still ramping up AI spending.

Nvidia stated that its latest financial guidance did not account for any data centre revenue from China. The company's main AI products there have faced restrictions linked to geopolitical tensions between Beijing and Washington. Management therefore removed that contribution from the forecast, while other regions continued to drive demand for the flagship chips.

Nvidia Q1 Earnings outlook, guidance and capital plans

For the second quarter of fiscal 2027, Nvidia projected revenue of $91 billion, plus or minus 2%. That guidance came in above the analyst consensus of $87.29 billion. The company also revealed cloud computing agreements worth $30 billion, up from $27 billion in the previous period, aimed at backing research and development projects.

Chief executive Jensen Huang reassured shareholders that Nvidia expected growth to continue as more customers adopted AI products. Huang said the company believed fresh generations of chips and systems would help it exceed the $1 trillion sales target already outlined for its main AI offerings. Nvidia framed the current environment as an extended investment cycle in computing.

Nvidia also detailed plans to return additional cash to investors through buybacks and dividends. The board approved a share repurchase programme of up to $80 billion. The quarterly cash dividend was lifted from 1 cent per share to 25 cents per share. These moves signalled confidence in future cash flows and reinforced the company's capital return strategy.

On the equity market, Nvidia shares ended regular trading on Wednesday at $223.47 each, up 1.30% for the session. That closing price implied a market capitalisation of $5.41 trillion. However, the stock slipped 1.26% in after-hours trade. The mixed reaction reflected strong numbers alongside questions about sustainability of growth and regulatory risks.