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NVIDIA delivered stronger first-quarter results than Wall Street expected, as demand for AI chips continued to drive revenue growth. The company reported higher earnings, raised its second-quarter sales outlook, and announced a large share buyback.
CEO Jensen Huang described the quarter as ‘extraordinary’ and said demand had moved sharply higher. However, the stock fell in extended trading, showing investors still want clearer proof that AI spending can support growth through 2027 and 2028.
NVIDIA reported first-quarter revenue of $81.62 billion, above analysts’ estimates of $79.18 billion. Adjusted earnings reached $1.87 per share, beating the expected $1.77 per share. The figures showed continued strength in the company’s AI chip business.
The company also raised its quarterly dividend to $0.25 per share. In addition, NVIDIA announced an $80 billion stock buyback, giving shareholders another return channel while the company continues to invest in AI infrastructure.
Data center revenue remained the company’s main growth engine. The segment generated $75.2 billion, compared with $39.11 billion in the same period last year. Wall Street had expected data center revenue of about $73.47 billion.
CFO Colette Kress said hyperscalers made up 50% of data center sales. The rest came from AI clouds, industrial clients, enterprise customers, and sovereign AI projects. NVIDIA also said it recorded no Hopper product revenue from China during the quarter.
Huang told investors that NVIDIA continues to serve a broad base of AI customers. He said the company supports major frontier AI models, including those linked to Anthropic, OpenAI, Meta, Google’s Gemini, and xAI.
“Agentic AI has arrived,” Huang said during the earnings call. He also said the AI factory buildout was moving at ‘extraordinary speed,’ as companies expand data centers to train and run advanced AI systems.
NVIDIA expects second-quarter revenue between $89.1 billion and $92.8 billion. This outlook came above Wall Street’s forecast of $87.3 billion. Huang said the company should grow faster than hyperscale capital spending because it serves customer groups beyond large cloud firms.
The company also changed how it reports revenue. It now separates sales into Data Center and Edge Computing. The Edge Computing segment covers PCs, game consoles, workstations, AI-RAN base stations, robotics, and automotive systems.
Despite the strong report, NVIDIA shares fell about 1.6% in extended trading. The move followed an initial drop of more than 2% after the earnings release. The decline showed caution around valuation, competition, and future AI spending.
eMarketer analyst Jacob Bourne raised one of the main concerns facing the company. “The lingering question is whether it can convince investors the AI buildout has durability into 2027 and 2028,” he said.
NVIDIA also faces pressure from rivals and large cloud companies. Cerebras, which recently held its IPO, sells a different AI processor design. Amazon said its chip business now runs at more than $20 billion in annual revenue and grows at a triple-digit rate.
Amazon also signed AI chip capacity deals with OpenAI and Anthropic through AWS. Meanwhile, Google introduced its TPU 8i and TPU 8t chips at its developer event. Reports also said Google signed a multigeneration, multigigawatt TPU deal with Anthropic.
Moreover, Huang said NVIDIA’s CUDA software platform, Vera CPU, and physical AI products can help the company expand into robotics, autonomous vehicles, and enterprise systems.
Also Read: NVIDIA’s $22 Trillion Outlook Faces Supply Strain as Rival AI Chips Gain Attention
