Nvidia Reports Strong Q1 Earnings Amid AI Demand, Announces Stock Buyback

Nvidia reported fiscal first-quarter 2027 revenue of $81.6 billion, exceeding analyst expectations and marking an 85% increase from the previous year. Adjusted earnings per share were $1.87, surpassing the estimated $1.77. Data center revenue reached $75.2 billion, reflecting the company's strong position in the AI sector.

The company authorized an additional $80 billion stock buyback and increased its quarterly cash dividend from 1 cent to 25 cents per share.

CEO Jensen Huang emphasized the growing demand for AI infrastructure, stating, "Global demand for NVIDIA’s AI infrastructure is incredibly strong."

Regarding China, CFO Colette Kress noted that no Hopper data center products were shipped to the region during the quarter, compared to $4.6 billion in the same period last year. She added, "While the US government has approved licenses for H200 to be shipped to China-based customers, we have yet to generate any revenue, and we are uncertain whether any imports will be allowed into the country."

Nvidia's outlook for the second quarter includes expected revenue of $91.0 billion, plus or minus 2%, with gross margins projected at 74.9%.

The company also addressed the ongoing conflict in the Middle East, stating that its global supply chain, including operations in Israel, has not been significantly impacted. However, Nvidia cautioned that escalation could affect future product development and revenue.