Nvidia, the world’s most valuable company, on Wednesday reported strong quarterly earnings, blowing past Wall Street forecasts, boosted by robust demand for its high-end artificial intelligence (AI) chips.
The company’s net profit jumped to $58.3 billion, or $2.39 per share, during the first quarter of fiscal 2027, ending April 26, more than tripling from $18.8 billion in the year-earlier period. Excluding one-time items, Nvidia earned $1.76 per share.
Nvidia posted record revenue of $81.62 billion during the first quarter, a surge of 85% from $44.01 billion, year-on-year (YoY).
Nvidia’s results exceeded analyst estimates of $1.75 per share earnings and $78.91 billion revenue, according to a poll by FactSet, as the company remains a primary beneficiary of a global AI infrastructure buildout.
The Santa Clara, California-based giant’s data center business, which sells the processors powering AI systems at tech giants and technology companies worldwide, led the quarter’s performance.
Data center revenue, which includes Nvidia’s key graphics processing units (GPUs), hit a record $75.2 billion, up 92% from a year ago.
For the current quarter, Nvidia projected revenue of $91 billion, plus or minus 2%. Analysts are forecasting $87.29 billion.
Nvidia said it was not assuming any data center revenue from China in its outlook, where its core product has been caught up in a geopolitical dispute between Beijing and Washington.
The company also disclosed $30 billion worth of cloud computing agreements, up sequentially from $27 billion, which it said were to help its research and development efforts.
Jensen Huang, CEO of Nvidia, aimed to assure investors that the company can keep up its blockbuster growth with the help of a broad base of customers and that new products will help it beat the $1 trillion in sales it has forecast for its flagship AI chips.
Nvidia Share Buyback
Nvidia also announced plans to return some money to shareholders and unveiled a massive share buyback plan. The company authorized a plan to buy back $80 billion worth of stock and increased its quarterly cash dividend to 25 cents per share from 1 cent.
On Wednesday, Nvidia stock price ended 1.30% higher at $223.47 apiece, with a market capitalisation of $5.41 trillion. However, in extended trading, Nvidia shares declined 1.26%.
(With inputs from Agnecies)
