20 May 2026 20:31 UTC - by Estefano Gomez
Nvidia shares recovered after an initial after hours drop as record AI data center revenue and a $91B outlook showed demand remains strong.
➤ Nvidia also increased its dividend and authorized a significant share repurchase program, signaling confidence despite investor concerns about valuation and geopolitical exposure.
➤ The company issued a strong Q2 outlook of $91 billion, though it noted no Data Center compute revenue from China due to export restrictions.
➤ Nvidia reported record Q1 revenue of $81.6 billion, driven by surging AI data center demand and the ramp-up of Blackwell products.
Nvidia shares were little changed in after hours trading after the AI chipmaker reported record first quarter revenue and issued a stronger outlook for the current quarter.
The stock initially dropped 3% in post market trading before recovering to flat at press time near $223.
Nvidia reported revenue of $81.6 billion for the first quarter of fiscal 2027, up 85% from a year earlier and 20% from the previous quarter. The company posted GAAP net income of $58.3 billion, up 211% year over year, while diluted earnings per share rose to $2.39.
On a non GAAP basis, Nvidia reported net income of $45.5 billion and diluted earnings per share of $1.87, up 140% from the same period last year. Revenue from Compute and Networking reached $74.6 billion, while Graphics revenue came in at $7.1 billion.
Data Center remained Nvidia’s main growth engine, with revenue reaching a record $75.2 billion, up 92% from a year earlier and 21% sequentially. The company said growth was driven by the ramp of Blackwell 300 products and demand for InfiniBand, Spectrum X Ethernet, and NVLink solutions.
Nvidia said hyperscale customers accounted for roughly half of Data Center revenue, while the rest came from AI clouds, industrial, enterprise, and sovereign customers. The company also said it did not ship Data Center Hopper products to China during the quarter, compared with $4.6 billion in the same period last year.
For the second quarter of fiscal 2027, Nvidia expects revenue of $91 billion, plus or minus 2%. The outlook does not assume any Data Center compute revenue from China, keeping export restrictions and geopolitical exposure in focus for investors.
The company also raised its quarterly dividend from $0.01 per share to $0.25 per share and authorized an additional $80 billion for share repurchases. Nvidia returned about $20 billion to shareholders through buybacks and dividends during the first quarter.
Nvidia’s results reinforce the scale of AI infrastructure demand, even as investors weigh whether rapid spending on chips, data centers, and cloud capacity can keep supporting the company’s valuation. The muted stock reaction suggests traders were looking beyond the headline beat toward China exposure, margin stability, and whether growth can keep accelerating from an already massive base.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
Categories rationale: The article focuses on Nvidia's record revenue and strong outlook, directly reflecting 'institutional-capital-inflows' (scalability) due to massive demand for AI infrastructure. Nvidia, as a key provider of AI chips and solutions, falls under 'major-financial-incumbents' (infrastructure-providers) in the context of enabling AI growth.Characteristics justification: The sentiment is positive (0.6) due to record revenues, strong outlook, and increased shareholder returns. However, there's a degree of uncertainty (0.3) regarding China exposure and sustained growth from a massive base, which tempers the overall positivity. Relevance is high (0.8) as it's a significant earnings report from a major tech company. Entropy is moderate (0.15) as while the numbers are record-breaking, the AI chip market is a known growth area. Staleness is low (0.2) as this is fresh earnings data.Tag relevance: The tags 'Nvidia', 'AI', and 'data center' are central to the article's topic. 'Revenue', 'Blackwell', 'InfiniBand', 'Spectrum X', and 'NVLink' highlight the financial performance and the specific technologies driving it. 'Hyperscale' and 'China' point to key customer segments and geopolitical considerations mentioned.asset-types: others
rwa: false
entropy: 0.15
sentiment: 0.6
staleness: 0.2
relevance: 0.8
uncertainty: 0.3RWATimes slug: cryptobriefing-nvidia-posts-record-81-6-b-revenue-as-ai-data-center-demand-surges-1676819869