TLDR
- Nvidia posted record Q1 FY2027 revenue of $81.6 billion, up 85% year over year
- Data Center revenue hit $75.2 billion, rising 92% YoY on strong Blackwell demand
- Q2 guidance set at ~$91 billion, excluding any China Data Center sales
- Networking revenue surged 199% to a record $14.8 billion
- Wall Street gives NVDA a consensus Buy from 54 analysts, average price target $303.84
Nvidia just turned in one of the most impressive quarterly results in semiconductor history. Revenue of $81.6 billion in a single quarter — up 85% from a year ago — is a number that would have seemed impossible even three years back.
NVIDIA Corporation, NVDA
The Data Center segment drove nearly all of it. At $75.2 billion, it rose 92% year over year, fueled by demand for Blackwell 300 systems and AI networking infrastructure. That is not a niche business anymore. That is the core of what Nvidia has become.
The company is guiding Q2 revenue to approximately $91 billion, plus or minus 2%. Notably, that forecast does not include any Data Center compute revenue from China, where export restrictions remain in place. The growth is happening without Beijing.
For full fiscal year 2026, Nvidia reported revenue of $215.9 billion, up 65%, with non-GAAP EPS of $4.77. Despite the stock’s massive run, earnings have kept pace well enough that the valuation has not stretched as far as some critics suggest.
Networking Becomes a Major Growth Driver
One part of the story that doesn’t always get enough attention: networking. Data Center networking revenue hit a record $14.8 billion last quarter, up 199% year over year. Products like NVLink, Spectrum-X Ethernet and InfiniBand are increasingly essential to running large AI clusters.
This is part of why Nvidia’s competitive position is hard to replicate. Customers aren’t just buying a GPU — they’re buying into a full-stack platform covering chips, networking, software and server infrastructure. That ecosystem makes switching costly.
Inventory stood at $25.8 billion at quarter end, with total supply commitments reaching $119 billion. That scale reflects the confidence Nvidia and its partners have in continued AI infrastructure spending — but it’s also a risk if that spending slows.
Rubin Is Already on the Horizon
Nvidia isn’t waiting for Blackwell to peak before moving on. The company has already introduced the Rubin platform, with production shipments expected in the second half of fiscal 2027. Nvidia says Rubin could cut the cost per AI token by up to tenfold for certain workloads compared to Blackwell.
That kind of rapid product cadence gives competitors very little time to close the gap.
China remains the clearest risk on the board. Previous export restrictions led to a multibillion-dollar charge tied to H20 inventory. The Q2 outlook assumes that market stays off the table. Meanwhile, major cloud providers are developing their own custom AI chips, and AMD continues to improve its accelerator lineup.
On Wall Street, the view is clear. Of 54 analysts tracked by MarketBeat, 48 rate NVDA a Buy and 3 a Strong Buy. The average 12-month price target sits at $303.84, with a range from $218 to $500. There are zero Sell ratings.
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