Nvidia's Revenue Surges 71% as Market Prices Forward Earnings at 21-Times
Nvidia reported a 71% rise in annual revenue to $253 billion and a 140% jump in adjusted earnings per share, while its shares trade at about 21 times forward earnings, reflecting market expectations that growth may soon moderate.
Nvidia posted a 71% increase in revenue over the past year, reaching $253 billion, and more than doubled its net income to roughly $160 billion. In the fiscal first quarter of 2027, revenue grew 85% year over year to $81.6 billion, driven primarily by its data-center segment, which saw a 92% rise to $75.2 billion. The company’s gross margin was near 75%, and non-GAAP earnings per share climbed 140% to $1.87.
Management forecast revenue of about $91 billion for the fiscal second quarter, nearly twice the $46.7 billion recorded in the same period a year earlier. The outlook was accompanied by a quarterly dividend increase to $0.25 per share and authorization of an $80 billion share-buyback program.
"The buildout of AI factories -- the largest infrastructure expansion in human history -- is accelerating at extraordinary speed," CEO Jensen Huang said in the earnings release.
Shares are trading around $219, roughly 21 times forward earnings, implying an expected earnings per share of about $10 for the next year, a 50% rise from the trailing twelve-month figure of $6.53. Analysts note that while the current valuation assumes modest growth after the next year, Nvidia’s guidance suggests continued rapid expansion, though the cyclical nature of the semiconductor market could eventually temper growth.
Investors are advised to consider the possibility of a slowdown in AI-related spending, which could affect future earnings, and to size positions accordingly given the inherent volatility of the sector.