NVIDIA Corp delivered fiscal first-quarter results that surpassed Wall Street expectations, driven by heightened demand for artificial intelligence chips and strong data center sales. The performance highlights NVIDIA’s continued leadership amid intensifying competition in the AI hardware sector.
For the latest fiscal quarter, NVIDIA reported adjusted earnings of $1.87 per share, exceeding the analyst consensus of $1.76 per share. Revenue rose to $81.62 billion, representing an 85% increase compared to the same period last year, and outperformed LSEG consensus, which averaged $78.86 billion. Total quarterly income was $58.32 billion, a considerable rise from $18.78 billion a year earlier and also 38% above expectations.
NVIDIA’s Data Center segment, which underpins AI and cloud infrastructure, generated $75.2 billion in revenue—beating the expected $73.5 billion. Within this segment, networking contributed $14.8 billion in sales, above the estimated $12.7 billion. The company maintained an adjusted gross margin of 75%.
To enhance shareholder returns, NVIDIA raised its quarterly dividend from $0.01 to $0.25 per share and introduced an $80 billion share repurchase plan. Despite these measures, the stock dipped roughly 1% in after-hours trading following the earnings announcement, with investors unmoved by the dividend increase.
NVIDIA projected second-quarter revenue of around $91 billion, a figure that surpassed the average analyst outlook of $87 billion but did not reach the most optimistic forecasts. The company’s AI chip technology continues to fuel spending by hyperscale cloud firms, which are expected to allocate approximately $725 billion toward AI this year.
While NVIDIA’s leadership in AI hardware remains clear, it now faces growing competition from other semiconductor manufacturers, as well as customers developing their own chips. Ahead of its earnings release, NVIDIA stock had advanced 20% since the beginning of the year, outpacing the broader S&P 500 index, though its performance lagged behind some other major semiconductor firms.
