Shares of Nvidia (NVDA) slipped in after-hours trading after the chipmaker reported earnings for its first quarter of Fiscal Year 2027. Earnings per share came in at $1.87, which beat analysts’ consensus estimate of $1.75 per share. In addition, sales increased by 85% year-over-year to $81.6 billion. This beat analysts’ expectations of $78.9 billion.
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High conviction NVDA bears now have this Tradr ETFCEO Jensen Huang said that the AI factory buildout is accelerating at extraordinary speed and called it “the largest infrastructure expansion in human history.” He argued that agentic AI is already creating real value across companies and industries, which puts Nvidia at the center of the shift. In his view, Nvidia is uniquely positioned because its platform runs across every major cloud, supports frontier and open-source models, and scales from hyperscale data centers all the way to edge devices.
The company also returned a record amount of capital to shareholders in the first quarter. More specifically, Nvidia bought back shares and paid dividends totaling about $20 billion, and it still had $38.5 billion left under its existing repurchase authorization at quarter-end. In addition, on May 18, 2026, the board approved another $80 billion in buyback capacity with no expiration date. Nvidia also raised its quarterly dividend from $0.01 per share to $0.25 per share, payable on June 26 to shareholders of record as of June 4.
Nvidia Changes How It Reports Results
Going forward, Nvidia is changing how it reports results to better reflect its future growth drivers. The company will now organize its business around two market platforms: Data Center and Edge Computing.
Data Center will include Hyperscale and ACIE, which covers AI Clouds, Industrial, and Enterprise, while Edge Computing will include PCs, game consoles, workstations, AI-RAN base stations, robotics, automotive, and other agentic or physical AI devices.
Under the old framework, data center compute revenue hit a record $60.4 billion, up 77% year-over-year and 18% sequentially, while data center networking revenue reached a record $14.8 billion, up 199% year-over-year and 35% sequentially.
2027 Outlook
NVIDIA’s outlook for Q2 Fiscal 2027 is as follows:
- Q2 revenue of $91 billion, plus or minus 2%, compared to the consensus estimate of $86.95 billion.
- Q2 GAAP and non-GAAP gross margins of 74.9% and 75%, respectively, plus or minus 50 basis points.
As we can see, guidance came in better than expected.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 40 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $281.97 per share implies 26.2% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
