Nvidia Q1 2027 Earnings Beat

CNBC reported Wednesday that Nvidia posted fiscal first-quarter revenue of $81.62 billion, surpassing analyst expectations of $78.86 billion. The chipmaker also announced an $80 billion expansion of its share repurchase program. Adjusted earnings per share came in at $1.87, ahead of the $1.76 consensus estimate. Nvidia stock moved little in after-hours trading following the release.

Data Center Revenue Drives Nvidia Earnings

Data center revenue was the headline performer, nearly doubling on a year-over-year basis. Hyperscale customers accounted for more than half of that total, generating roughly $38 billion alone. That figure rose 12% quarter-over-quarter.

Nvidia CFO Colette Kress told analysts that the company is now helping deploy AI compute capacity across more than 80 data centers exceeding 10 megawatts. A separate segment covering AI cloud, industrial, and enterprise customers generated the remaining $37 billion. AI cloud revenue more than tripled year-over-year within that category.

Kress also noted that rental pricing for Nvidia’s H100 chips has climbed roughly 20% since January. Older A100 cloud pricing is up nearly 15% over the same period. Customers, she said, are still generating profitable returns well past their hardware’s depreciation window.

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Background: Nvidia’s GPU Dominance and the AI Boom

Nvidia’s rise as the dominant AI chipmaker stems from its graphics processing units, which are uniquely suited to the parallel computation required for training large language models. That positioning powered extraordinary revenue growth across 2024 and 2025 as hyperscalers raced to build out AI infrastructure. CEO Jensen Huang said Wednesday that agentic AI has now arrived and that the broader AI factory buildout is accelerating at an extraordinary pace.

Nvidia also disclosed in a regulatory filing that it deployed $18.6 billion into private companies and infrastructure funds during the quarter.

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Nvidia Sets Sights on the CPU Market

Beyond GPUs, Kress outlined a significant new ambition. Nvidia wants to become the world’s leading CPU supplier, a space currently controlled by Intel and Advanced Micro Devices. Its new Vera CPU, she said, opens a $200 billion addressable market. Kress projected $20 billion in CPU revenue for the current fiscal year, adding that every major hyperscaler and systems vendor is already partnering with Nvidia on deployment.

On geopolitical risk, Nvidia confirmed its Israeli operations of roughly 5,900 employees remain unaffected by the ongoing U.S.-Iran conflict. However, the company warned that an escalation could weigh on product development, supply chains, and revenue.

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