Nvidia Reports Record Quarterly Revenue Amid AI Surge, Initiates $80 Billion Stock Repurchase Program

Nvidia Reports Record Quarterly Revenue of $81.6 Billion, Beating Estimates

Nvidia, the world's most valuable company, reported record quarterly revenue of $81.6 billion on Wednesday, exceeding Wall Street estimates as strong global demand for artificial intelligence chips continued to fuel growth. The results for the first quarter of fiscal 2027, which ended on April 26, marked an 85% increase from the same period last year and a 20% rise from the previous quarter.

The company forecast revenue of $91 billion, plus or minus 2%, for the current quarter, ahead of analysts' expectations of $86.84 billion, according to LSEG data. Nvidia's earnings are widely seen as a key indicator of the health of the AI industry, as its chips power most major data centres and advanced AI models worldwide.

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Nvidia's financial performance was further boosted by a sharp increase in shareholder returns. The company raised its quarterly cash dividend from 1 cent per share to 25 cents per share and unveiled an $80 billion share buyback programme. AI infrastructure spending continues to rise rapidly, with major US technology companies including Alphabet, Amazon, and Microsoft expected to spend more than $700 billion on AI this year, up from around $400 billion in 2025.

Despite Nvidia's dominance in AI chips, competition in the sector is intensifying. Tech companies are increasingly investing in their own custom chips for AI inferencing, the process through which AI systems respond to user queries. The company is also facing growing pressure from rivals such as Intel and Advanced Micro Devices, both of which are targeting the fast-growing inference chip market.

To strengthen its position, Nvidia unveiled a new central processor and AI system in March built on technology from AI chip startup Groq. The company reported adjusted earnings of $1.87 per share for the quarter, above analysts' estimates of $1.76 per share. Data centre revenue reached $75.2 billion, also surpassing market expectations.

However, investors reacted cautiously to the company's latest sales forecast, with Nvidia shares slipping less than 1% in late trading after the results announcement. Chief Executive Officer Jensen Huang has maintained that Nvidia is positioned for continued growth as demand for AI infrastructure remains strong.

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