Nvidia has delivered yet another blockbuster quarter, surpassing both market expectations and its own forward guidance. The company projected Q1 FY2027 revenue at a midpoint of US$78 billion, comfortably above the US$72.78 billion analysts had anticipated. Significantly, this guidance assumes zero data centre revenue from China, meaning any easing of export restrictions could provide additional upside not currently reflected in forecasts.

Quarterly revenue reached US$68.13 billion, exceeding consensus expectations of roughly US$65.9 billion. Data centre revenue surged to a record US$62.3 billion, above the US$60.4 billion forecast, while adjusted earnings per share came in at US$1.62 versus estimates of US$1.53. Profit for the quarter hit US$43 billion — surpassing Nvidia’s entire annual revenue as recently as 2023.

“For a company of this scale to sustain such rapid expansion underscores the structural strength of demand,” analysts noted. Gross margins of 75.2% also beat forecasts, helping to alleviate concerns about profitability as the Blackwell platform continues its rollout.

The results underscore that the AI infrastructure buildout is not slowing — it is accelerating. Despite recurring scepticism each quarter, Nvidia continues to demonstrate the durability of the cycle. Spending commitments from Microsoft, Amazon, Google and Meta — projected to total US$650 billion for AI infrastructure in 2026 — highlight the magnitude of investment fuelling this trend. Nvidia remains firmly at the centre of that wave.

Networking revenue alone soared 263% year-on-year to a record US$11 billion, reflecting that AI transformation extends beyond chips to full-scale data centre re-architecture. The company has secured US$95.2 billion in inventory and capacity commitments, nearly double last year’s level, ensuring it can meet demand from hyperscalers operating at unprecedented scale.

Gaming was the only softer segment, with supply constraints expected into Q1. However, with data centre revenue now accounting for 91% of total revenue, gaming is no longer the primary growth driver. Since the emergence of ChatGPT, Nvidia’s data centre revenue has grown nearly thirteenfold.

“As the AI race intensifies and big tech spending remains at historic highs, Nvidia continues to position itself as the essential enabler of the AI ecosystem,” analysts said, reinforcing why the company is widely regarded as the engine powering this technological shift.