Nvidia smashed revenue records in its first quarter of fiscal 2027, with sales up 85pc year-on-year to $81.6bn.

The Santa Clara-based company saw its data centre division lead the charge, with revenue reaching $75.2bn, up 92pc from a year ago. Demand for Nvidia’s AI chips from hyperscale cloud providers and enterprise AI factories showed no signs of slowing, with quarterly revenue also up 20pc.

Gross margins held firm at around 75pc, and net income more than tripled to $58.3bn compared to the same period last year, reflecting Nvidia’s central role in the current AI infrastructure boom.

CEO Jensen Huang was typically ebullient, describing the moment as a major inflection point for the industry. “The buildout of AI factories – the largest infrastructure expansion in human history – is accelerating at extraordinary speed,” he said.

“Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries.”

Huang described “an extraordinary quarter” in closing out yesterday’s (21 May) earnings call, according to CNBC. “Demand has gone parabolic. The reason is simple: agentic AI has arrived,” he said.

“AI can now do productive and valuable work. Tokens are now profitable, so model makers are in a race to produce more. In the AI era, compute capacity is revenue and profits.”

Looking ahead, the company guided for Q2 revenues of $91bn, pointing to continued explosive growth, although it did note that it is not counting on any data centre revenue from China in that forecast.

Not everyone is without reservation. Alvin Nguyen, senior analyst at Forrester, struck a note of caution: “At a roughly $5trn valuation, the question is no longer whether growth is strong, it’s whether growth can be sustained at this level.

“Nvidia’s continued success creates an extraordinary level of pressure that’s difficult to maintain, though the company has consistently risen to the challenge so far.”

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