Nvidia China revenue falls 53%

Nvidia said on May 20 that first-quarter fiscal 2027 revenue rose 85% from a year earlier to $81.6 billion, extending the company’s AI-driven sales surge even as revenue from customers headquartered in China, including Hong Kong, fell 53% to $4.55 billion. The figures appeared in Nvidia’s earnings release and quarterly filing for the quarter ended April 26, 2026. Data center revenue, the company’s largest business, rose 92% to $75.2 billion. ### How did Nvidia grow that fast while China shrank? Nvidia’s May 20 earnings release said the company’s total revenue climbed because demand for AI infrastructure remained strong, particularly in data centers. The company reported record quarterly sales of $81.6 billion, up 20% from the prior quarter as well as 85% from a year earlier. (nvidianews.nvidia.com) The quarterly filing cited by Benzinga showed the regional split behind that result. Revenue from customers headquartered in China, including Hong Kong, dropped to $4.55 billion from $9.66 billion a year earlier, even as overall company sales nearly doubled. ### Where did the growth come from instead? (nvidianews.nvidia.com) Data center revenue reached $75.2 billion in the quarter, according to Nvidia’s earnings release, accounting for most of the company’s top-line growth. Nvidia said the increase was driven by demand for AI computing platforms. Theia Global, summarizing the filing, reported that U.S. revenue rose to $63.8 billion and Taiwan revenue increased to $12 billion. (benzinga.com) That geographic mix helps explain how Nvidia absorbed the China decline and still posted record sales. ### Why are investors looking at customer concentration too? (nvidianews.nvidia.com) Benzinga said Nvidia disclosed that three direct customers represented 21%, 17% and 16% of total revenue in the quarter. Taken together, those customers accounted for 54% of sales, a level that highlights how much current growth depends on a small number of very large buyers. (theia.global) That concentration does not change the quarter’s headline growth, but it does show the company’s exposure is not only regional. It is also tied to a narrow group of customers spending heavily on AI infrastructure. That reading is an inference from the filing data cited by Benzinga. (benzinga.com) ### What did Nvidia say about the next quarter? Nvidia said on May 20 that second-quarter revenue is expected to be about $91 billion. The company also announced an additional $80 billion share repurchase authorization and raised its quarterly cash dividend to $0.25 per share from $0.01. (benzinga.com) MSN’s syndication of Benzinga’s reporting said analysts and market commentators continued to point to strong AI demand after the results, despite the hit to China revenue. ### What is the clearest takeaway from the filing? Nvidia’s latest quarter showed that a steep drop in China revenue did not stop the company from posting record sales, because AI demand elsewhere remained large enough to offset it. (nvidianews.nvidia.com) The same filing also showed that Nvidia’s revenue base is concentrated by geography and by customer, even as total sales continue to expand. (msn.com) Nvidia’s next test will come with its second-quarter results, after the company’s May 20 forecast of about $91 billion in revenue. (nvidianews.nvidia.com)