Nvidia reports record quarter — $81.6B revenue, $58.3B net on booming AI/data-center demand

Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion on May 20, up 85% from a year earlier, and said net income reached $58.3 billion as demand for AI infrastructure remained elevated. The Santa Clara, California, company said data center revenue rose 92% to $75.2 billion in the quarter ended April 26, 2026, extending the surge that has made Nvidia the central hardware supplier for many AI buildouts. The company paired the results with an additional $80 billion share repurchase authorization and a dividend increase to $0.25 a share from $0.01. Nvidia also said it expects second-quarter revenue of about $91 billion. The records did not produce an equally strong market reaction. BBC reported that Nvidia shares fell after the results as investors questioned whether the company could sustain its pace of growth, while CNBC said the earnings call showed investors focusing on China and on how Nvidia is broadening its business beyond the largest cloud customers. (nvidianews.nvidia.com) ### How much of this quarter came from data centers? (nvidianews.nvidia.com) Data center revenue was $75.2 billion, making it by far Nvidia’s largest business and the main engine of the quarter’s growth. Under Nvidia’s previous reporting structure, data center compute revenue was $60.4 billion and data center networking revenue was $14.8 billion, the company said. (bbc.co.uk) Jensen Huang, Nvidia’s chief executive, said in the earnings release that the “buildout of AI factories” was accelerating and that “agentic AI has arrived.” Nvidia said its platform runs across cloud systems, frontier models and edge deployments, from hyperscale data centers to devices outside centralized server campuses. (nvidianews.nvidia.com) ### Why did Nvidia change how it reports the business? Nvidia said it is moving to a new reporting framework with two market platforms: Data Center and Edge Computing. Within Data Center, it will now break out Hyperscale and ACIE, which stands for AI Clouds, Industrial and Enterprise. The company said Hyperscale will cover public cloud providers and large consumer internet companies, while ACIE is meant to capture demand from industry-specific AI factories and data centers built across countries and sectors. (nvidianews.nvidia.com) Edge Computing will include products tied to PCs, consoles, workstations, AI-radio access networks, robotics and automotive systems. CNBC said investors may have been paying closer attention to those newer categories because they offer a way to measure Nvidia’s growth outside the handful of hyperscalers that have dominated the AI spending boom. SiliconANGLE reported that edge-computing revenue reached $6.4 billion, up 29% from a year earlier. ### What did Nvidia say about China? (nvidianews.nvidia.com) Nvidia said it is not assuming any revenue from data center chip sales to China in its current-quarter outlook, a point that became one of the main investor questions after the release. BBC reported that Huang had told CNBC he had “largely conceded” that market to Huawei. MarketWatch, via Morningstar, reported that Nvidia had no China data-center compute revenue in the fiscal first quarter and is not assuming any in the current quarter because of uncertainty over whether imports will be allowed. (cnbc.com) CNBC also reported that Huang said he believes the Chinese market will reopen to Nvidia. (aol.com) ### What are investors watching next? Nvidia said it returned about $20 billion to shareholders in the first quarter through repurchases and dividends, and that $38.5 billion remained under its prior authorization before the board approved the additional $80 billion on May 18. The higher quarterly dividend will be paid on June 26 to shareholders of record on June 4. (morningstar.com) Nvidia’s next test is its second-quarter target of about $91 billion in revenue, which the company gave alongside the May 20 results. The company’s investor calendar also lists its 2026 annual meeting of stockholders for June 24. (aljazeera.com) (nvidianews.nvidia.com)