NVIDIA posts $58.3B profit

Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion on May 20, up 85% from a year earlier, as demand for its artificial-intelligence chips kept lifting sales in data centers. The company said quarterly profit rose to $58.3 billion, and its data-center business generated $75.2 billion in revenue. Nvidia also approved an additional $80 billion share repurchase authorization and raised its quarterly dividend to $0.25 a share. The results extended a run of outsized growth tied to AI infrastructure spending, even as Chief Executive Jensen Huang said U.S. export controls had effectively pushed the company out of China’s advanced AI-chip market. ### How much of Nvidia’s quarter came from data centers? Nvidia said data-center revenue reached $75.2 billion in the quarter ended April 26, 2026, up 92% from a year earlier. Under the company’s prior reporting structure, data-center compute revenue was $60.4 billion and networking revenue was $14.8 billion. (markets.businessinsider.com) Jensen Huang said in the earnings release that the “buildout of AI factories” was accelerating, and Nvidia described itself as central to cloud, enterprise and edge AI deployments. The company is also changing how it reports results, moving to two market platforms: Data Center and Edge Computing. (markets.businessinsider.com) ### What did Nvidia do with cash after posting the profit jump? On May 18, Nvidia’s board approved an additional $80 billion for share repurchases, without expiration, the company said. Nvidia had $38.5 billion remaining under its prior authorization at the end of the quarter and said it returned about $20 billion to shareholders in the period through buybacks and dividends. (markets.businessinsider.com) The company said it would raise its quarterly cash dividend from $0.01 a share to $0.25 a share. Nvidia said the higher dividend will be paid on June 26, 2026, to shareholders of record on June 4, 2026. ### What exactly did Huang say about China and Huawei? (markets.businessinsider.com) Huang told CNBC that Nvidia has “largely conceded” China’s advanced AI-chip market to Huawei. He said Huawei was “very, very strong” and said Chinese chip companies were doing well because Nvidia had “evacuated that market.” CNBC reported that China had once accounted for at least one-fifth of Nvidia’s data-center revenue. (markets.businessinsider.com) The report said the Trump administration told Nvidia in April that it would need a license to export chips to China and several other countries, leaving the company effectively shut out of that market. ### Why did SoftBank shares jump on Nvidia’s results? (cnbc.com) SoftBank Group shares closed 19.85% higher on May 21, adding more than $35 billion in market value, after Nvidia’s earnings reinforced investor demand for AI-linked assets, CNBC reported. Arm Holdings, in which SoftBank has a major stake, designs chips used in AI servers and data centers powered by Nvidia systems, CNBC said. (cnbc.com) Andrew Jackson, head of Japanese equity strategy at Ortus Advisors, told CNBC that SoftBank’s rally was also being driven by optimism around a potential OpenAI listing. CNBC reported that Arm shares rose more than 15% in U.S. trading and that other Asian semiconductor and equipment stocks also advanced. ### What comes next from here? (cnbc.com) June 4 is the next dated milestone Nvidia gave investors, because that is the record date for the higher dividend. June 26 is the payment date, and the company’s next quarterly update will show whether data-center demand and China restrictions continue to shape results at the same time. (markets.businessinsider.com) (cnbc.com)