Nvidia posts $82B quarter

Nvidia reported record first-quarter fiscal 2027 revenue of $81.6 billion on May 20, up 85% from a year earlier, as demand for its AI chips kept lifting its data-center business. The Santa Clara, California, company said revenue for the quarter ended April 26 reached $81.6 billion and data-center revenue rose to a record $75.2 billion. (nvidianews.nvidia.com) Nvidia also announced an additional $80 billion share repurchase authorization and raised its quarterly cash dividend to $0.25 a share from $0.01. Jensen Huang, Nvidia’s chief executive, said in the earnings release that “global demand for NVIDIA’s AI infrastructure is incredibly strong.” The results extended a run in which Nvidia has become the clearest public-market proxy for spending on AI servers, chips and networking gear. (investor.nvidia.com) ### How big was the quarter, exactly? Nvidia said first-quarter net income was $58.8 billion, up 126% from a year earlier, while diluted earnings per share were $1.19. On a non-GAAP basis, diluted earnings per share were $1.81. The company said gross margin was 60.5%, or 71.3% excluding charges tied to its H20 products. (nvidianews.nvidia.com) The April 26 quarter was dominated by the data-center segment, which generated $75.2 billion of revenue, up 92% from a year earlier. Gaming revenue was $3.8 billion, professional visualization brought in $509 million, and automotive and robotics revenue was $567 million, Nvidia said. (nvidianews.nvidia.com) ### Why did profits and margins come with an asterisk? Nvidia said U.S. export controls forced it to record a $4.5 billion charge tied to excess H20 inventory and purchase obligations. The company said first-quarter H20 sales were $4.6 billion before the new licensing requirements took effect, and that it was unable to ship an additional $2.5 billion of H20 revenue in the quarter. (nvidianews.nvidia.com) The company said those restrictions cut into reported margins and left China as the main unresolved pressure point in an otherwise expanding business. Nvidia forecast second-quarter revenue of about $88 billion, plus or minus 2%, and said that outlook reflected a loss of roughly $8 billion in H20 revenue because of the export limits. (nvidianews.nvidia.com) ### If the numbers were that strong, why was Wall Street restrained? CNBC reported that Nvidia’s stock slipped after the results even as the company beat analyst expectations on revenue and earnings. The network said investors were focused on the sustainability of growth, the China restrictions and whether data-center revenue was strong enough to clear an elevated bar. (investor.nvidia.com) Reuters reported before the release that options traders were pricing in a roughly $355 billion swing in Nvidia’s market value around earnings, underscoring how much expectation had already built into the stock. That setup left less room for surprise even with record figures. (nvidianews.nvidia.com) ### What did Huang say about China and Huawei? Jensen Huang told CNBC on May 21 that Nvidia has “largely conceded” China’s advanced AI chip market to Huawei. CNBC said Huang described Huawei as “very, very strong” and said Nvidia had low expectations that approvals would soon reopen the market. Nvidia had already disclosed that China-related controls were affecting H20 sales. (cnbc.com) Huang’s comments added a public acknowledgment that the competitive balance in China has shifted while U.S. restrictions remain in place. ### What does the buyback and dividend say about cash generation? (money.usnews.com) Nvidia said it returned about $20 billion to shareholders in the quarter through repurchases and dividends. As of quarter-end, the company had $38.5 billion remaining under its prior repurchase authorization, and its board approved an additional $80 billion authorization without expiration on May 18. (cnbc.com) The company said the new quarterly dividend of $0.25 a share will be paid on June 26, 2026, to shareholders of record on June 4, 2026. Nvidia’s next formal checkpoint with investors will be its second-quarter fiscal 2027 results, after it guides for about $88 billion in revenue for the current quarter. (investor.nvidia.com 1) (investor.nvidia.com 2)