Nvidia Stock Holds Near $223 as Data Center Revenue Drives Q1 Earnings Beat

TLDR

• Nvidia closed at $223.47, up 1.30% in the latest regular trading session.
• Q1 revenue rose 85% year over year to $81.62B, above analyst estimates.
• Adjusted EPS came in at $1.87, beating the consensus estimate of $1.76.
• Data center revenue reached $75.2B, up 92% from the same quarter last year.
• Nvidia guided for about $91B in Q2 revenue, above Wall Street forecasts.

NVIDIA Corp. reported another stronger-than-expected quarterly result, supported by continued demand for artificial intelligence chips and a sharp rise in data center revenue. The company’s stock closed at $223.47 in the latest standard trading session, up $2.86, or 1.30%, from the previous close.

For the fiscal first quarter, Nvidia posted adjusted earnings of $1.87 per share, above the analyst estimate of $1.76 per share. Revenue rose 85% from a year earlier to $81.62 billion, compared with the consensus forecast of $78.86 billion.

The company also reported total income of $58.32 billion for the quarter, up from $18.78 billion a year earlier. The results showed how demand for AI infrastructure continues to support Nvidia’s business, particularly among cloud providers, enterprise customers and companies building large AI systems.

Data Center Revenue Leads Nvidia Results

Nvidia’s data center business remained the main driver of growth. The segment generated $75.2 billion in sales during the quarter, up 92% from the same period a year earlier. Data center revenue now accounts for more than 90% of Nvidia’s total sales.

The company recently changed how it reports revenue, dividing its business into data center and edge computing categories. Nvidia Chief Executive Jensen Huang said the structure gives investors and analysts a clearer view of the company’s operations because the two areas use different systems, software and sales channels.

Hyperscale cloud providers accounted for more than $38 billion of data center sales, according to Chief Financial Officer Colette Kress. Another $37 billion came from AI clouds, industrial and enterprise customers, a group now described as ACIE. That segment tripled from a year earlier.

Kress said demand for AI infrastructure has increased as companies expand data centers designed for model training and inference. She also said the price of renting H100 graphics processing units has risen 20% this year, while A100 cloud pricing has gained nearly 15%.

Vera Rubin and CPU Business Draw Attention

NVIDIA also gave investors more detail on its next-generation Vera Rubin rack-scale AI system. Huang said early demand for Vera Rubin is strong and said the system is expected to perform better than the company’s Grace Blackwell platform.

The Vera Rubin system includes 72 Rubin GPUs and 36 Vera central processing units. Nvidia says the system delivers 10 times more performance per watt than its predecessor.

The company is also expanding beyond GPUs into CPUs. Kress said the Vera CPUs open a new market opportunity for Nvidia and said major hyperscale and system manufacturers are working with the company on deployment. Nvidia expects CPU sales to reach about $20 billion this year.

NVIDIA has built its AI business mainly around GPUs, which are used for parallel computing tasks needed to train large language models. As inference and agentic AI workloads grow, the company is also positioning its CPUs and other chips for broader use inside AI data centers.

The company also discussed its LPX rack system built around custom Groq language processing units. Huang said LPX is designed for low latency and high token rates, though he said its use case is not broad and may remain limited for now.

Stock Reaction and Shareholder Returns

Nvidia guided for about $91 billion in revenue for the current quarter, above Wall Street’s estimate of $87.39 billion. The guidance is nearly $10 billion higher than first-quarter revenue, showing that the company expects AI chip demand to remain strong in the near term.

Despite the earnings beat and higher guidance, Nvidia shares were little changed in extended trading. Analysts said much of the strong performance may have already been reflected in the share price before the earnings release.

The company’s market value has increased sharply since the start of the AI investment cycle, rising from about $400 billion at the end of 2022 to more than $5.4 trillion. Some investors are watching whether demand can continue into 2027 and 2028 as competition grows from Google, Amazon, AMD, Intel and other chip developers.

Nvidia also announced an $80 billion stock buyback authorization and raised its quarterly cash dividend to 25 cents per share from one cent. The shareholder return plan came alongside the company’s strongest sales contribution from data center products and continued investment in AI infrastructure.

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