New quarter, new record at Nvidia: The company reports record sales of 81.6 billion US dollars for the first quarter of its own fiscal year 2027. This corresponds to the period from February to the end of April 2026. Compared to the same period last year, sales grew by 85 percent and compared to the previous quarter by 20 percent. The growth is above average even for Nvidia.
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Due to the AI boom, the company no longer has traditional demand cycles. Nvidia sells everything that partners like chip contract manufacturer TSMC can produce. Therefore, the sequential comparisons are particularly interesting. Compared to the previous quarter, operating profit grew by 21 percent to $53.5 billion.
Net income rose 36 percent to $58.3 billion. It is higher than operating profit because Nvidia records almost $16 billion in paper profits from company investments. This is probably primarily due to Intel’s original stake of five billion US dollars. By the deadline for the annual report, the value had roughly quadrupled. In addition, the value of ARM and Coreweave, in which Nvidia also has a stake, increased during the period.
That also inflates operating cash flow, from $36.2 billion to $50.3 billion. The gross margin stagnates at a high 75 percent.
More spending for investors
Nvidia will invest more money in share buybacks and dividends in the future. The board has approved another $80 billion buyback package with no end date. Together with the previous cushion, Nvidia now has $118.5 billion left for this. For comparison: That’s more than the German manufacturer Infineon is worth (the equivalent of almost 103 billion US dollars). In the last quarter alone, Nvidia spent $19.3 billion on stock buybacks.
Nvidia sweetens investors’ investments and increases the dividend by a factor of 25, from one to 25 US cents per share. This means that quarterly distributions will rise from a comparatively low $243 million to probably over $6 billion.
GeForce is disappearing from the trend
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Meanwhile, players have little to laugh about. Once again, Nvidia makes it clear that the company is no longer interested in them: Nvidia is restructuring the sales segments into data centers and edge computing. Data Center is further divided into “Hyperscale” and “AI Clouds, Industrial and Enterprise”.
Edge computing combines sales of desktop PCs, notebooks, game consoles such as Nintendo’s Switch, workstations, mobile stations, robotics and automotive. For the first time, Nvidia no longer mentions gaming sales, driven by GeForce graphics cards, separately. GeForce thus disappears into obscurity.
Nvidia’s new revenue breakdown. “Gaming” disappears as a separate item.
(Image: Nvidia)
Hyperscale, meanwhile, includes revenue from the largest customers such as Amazon (AWS), Google, Meta and Microsoft. AI Clouds & Co. are intended to identify growth markets. Currently, sales are split roughly 1:1 with over 37 billion US dollars each. Edge computing, on the other hand, is tiny at $6.4 billion. GeForce GPUs are likely to be the largest item there.
Slight loss on the stock market
Nvidia expects sales of around $91 billion in the current quarter. In advance, analysts expected a sales forecast of almost 87 billion US dollars. Both the previous sales and the outlook do not include any direct sales of AI accelerators to China.
Meanwhile, the stock market seems to be having a hard time with the restructuring. In after-hours trading, the share fluctuated up to a loss of 1.5 percent.
(mma)
