NVIDIA's Q1 Performance is Solid, Vera CPU Drives Future Increment

marsbitPublished on 2026-05-21Last updated on 2026-05-21

Abstract

NVIDIA reported solid Q1 FY2027 results and Q2 guidance, largely meeting optimistic investor expectations. Revenue reached $81.62 billion, up 85% year-over-year, with adjusted EPS of $1.87 beating estimates. The company re-segmented its business, highlighting Data Center as the core growth driver, with Hyperscale revenue surging 115%. The most significant new information was the unveiling of the Vera CPU, targeting a new $200 billion market for Agentic AI. It can be sold alongside Rubin GPUs or independently, with production starting in Q3. Management reaffirmed the $1 trillion revenue target for the Blackwell and Rubin platforms through 2027. Q2 revenue guidance of approximately $91 billion aligns with expectations. However, the announcement of a new $80 billion share buyback authorization and a raised dividend, while positive, fell slightly short of some investors' hopes for a larger repurchase plan.

Original Author: SoSoValue Research

NVIDIA released its Q1 FY2027 results. The Q1 performance and Q2 guidance basically met the optimistic expectations of buyers, but the share buyback was slightly below investor expectations. The stock price fell slightly by 1.3% after hours, as the market lacked short-term catalysts, but the long-term growth thesis remains clear.

Q1 Performance Highlights: Solid and in Line with Optimistic Expectations

NVIDIA's Q1 revenue was $81.62 billion, an 85% year-over-year increase and a 20% sequential increase, basically within the buyer's optimistic expectation range of $81-82 billion and higher than the Bloomberg consensus estimate of $78.91 billion. Adjusted gross margin was 75%, up 14.2 percentage points year-over-year, matching the Bloomberg consensus estimate of 75.1%. Adjusted net profit was $45.55 billion, up 139% year-over-year. Adjusted EPS was $1.87, higher than the Bloomberg consensus estimate of $1.77.

This quarter, NVIDIA restructured its revenue segments into Data Center and Edge Computing to better reflect the AI-driven business structure. Within Data Center, hyperscale customer orders are the core growth driver:

  • Data Center revenue was $75.2 billion, up 92% year-over-year and 21% sequentially, higher than the Bloomberg consensus estimate of $73.33 billion.
  1. Hyperscale (including public cloud and large internet companies) revenue was $37.9 billion, up 115% year-over-year, accounting for 50.4% of Data Center revenue. It is the fastest-growing segment and the most important driver of NVIDIA's revenue.
  2. ACIE (AI Cloud, Industry, and Enterprise Applications) revenue was $37.4 billion, up 74% year-over-year, accounting for 49.6%.
  • Edge Computing (Agent & Physical AI, including PC, consoles, workstations, AI-RAN base stations, robots, and automotive) revenue was $6.4 billion, up 29% year-over-year and 10% sequentially.

Earnings Call: Vera CPU is the Most Core Incremental Information

The conference call revealed that the Vera CPU opens up a new $200 billion market for NVIDIA. Designed for Agentic AI, the Vera CPU can be sold alongside the Rubin GPU or independently as a CPU, storage node, or security node. Total CPU revenue is expected to approach $200 billion this year, with mass production and shipping planned to begin in Q3; it represents a new incremental business for NVIDIA.

Management maintained the $1 trillion revenue target for the Blackwell + Rubin platforms from 2025-2027, without an upward revision for now. The Rubin platform will begin mass production in the second half of the year, starting in Q3 with ramp-up in Q4. Shipments are expected to increase significantly in Q1 next year.

Furthermore, Chinese revenue continues to be excluded from guidance. The U.S. government has approved shipments of H200 to Chinese customers, but it's uncertain whether China will allow the imports.

Q2 Guidance Basically Meets Expectations

  • Q2 revenue guidance is $91.0 billion (±2%, excluding any contribution from China), matching the buyer's optimistic expectation of $91.0 billion.
  • Adjusted gross margin is guided to be 75% (±0.5%), basically meeting expectations.

However, buyback was slightly below expectations: The company authorized an additional $80 billion for share repurchases and raised the quarterly dividend to $0.25 per share (from $0.01 previously), slightly below some investors' expectations for over $100 billion in new buyback authorization.

Related Questions

QWhat were the key financial highlights for NVIDIA's Q1 FY2027 according to the article?

ANVIDIA's Q1 FY2027 revenue was $81.62 billion, an 85% year-over-year (YoY) increase and 20% quarter-over-quarter (QoQ). Adjusted gross margin was 75%. Adjusted net profit was $45.55 billion, up 139% YoY, and adjusted EPS was $1.87.

QHow is NVIDIA's business revenue now structured, and which segment showed the fastest growth in Q1?

ANVIDIA has restructured its revenue into Data Center and Edge Computing. The Data Center segment generated $75.2 billion in Q1, growing 92% YoY. Within this, Hyperscale customer revenue grew 115% YoY to $37.9 billion, representing 50.4% of Data Center revenue and was the fastest-growing segment, making it the most important driver for NVIDIA.

QWhat significant new product and market opportunity did NVIDIA announce during the earnings call, according to the article?

ADuring the earnings call, NVIDIA announced the Vera CPU. Designed for Agentic AI, it can be sold alongside Rubin GPUs or independently. It is expected to open up a new $200 billion market for NVIDIA, with total CPU revenue this year projected to be close to $20 billion. Mass production and shipment are planned to start in Q3.

QWhat was NVIDIA's Q2 FY2027 revenue guidance and how did it compare to market expectations?

ANVIDIA's revenue guidance for Q2 FY2027 is $91.0 billion (±2%, excluding any contribution from China). This figure was essentially in line with the bullish buy-side expectation of $91.0 billion.

QWhy was there some disappointment regarding NVIDIA's capital return to shareholders mentioned in the article?

AThe disappointment stemmed from NVIDIA's share repurchase announcement. While the company authorized an additional $80 billion for share buybacks and raised its quarterly dividend to $0.25 per share, this was slightly below some investors' expectations for a new buyback authorization exceeding $100 billion.

Related Reads

Token FOLD Auction Imminent, What is The Interfold, Supported by Vitalik?

**Title:** FOLD Token Auction Approaches: What is The Interfold, Supported by Vitalik? **Summary:** The Interfold, a "confidential coordination infrastructure" previously known as Enclave, is launching its functional token FOLD via a Uniswap Continuous Clearing Auction (CCA) starting July 8th. Endorsed by Ethereum co-founder Vitalik Buterin in May, the protocol tackles the core problem of governance bribery in decentralized voting (e.g., on platforms like Votium) by enabling multiple parties to compute a verifiable result without exposing their private input data. Its core technology, the Encrypted Execution Environment (E3), uses a distributed network of "Ciphernodes" that perform computations on fully encrypted data using Fully Homomorphic Encryption (FHE), with process integrity verified by Zero-Knowledge (ZK) proofs and decryption keys managed via Decentralized Threshold Cryptography (DTC) to eliminate a single point of trust. The primary application is CRISP (Coercion-Resistant Impartial Selection Protocol) for DAO governance, which ensures encrypted voting, "receipt-free" votes to prevent bribery, and verifiable tallying. The Interfold, developed by the Gnosis Guild team (creators of the Zodiac DAO tooling), positions itself as a focused solution to make on-chain voting truly un-buyable, realizing the vision of Vitalik's earlier MACI (Minimal Anti-Collusion Infrastructure) framework without its reliance on a single trusted coordinator. FOLD tokens will be used for Ciphernode staking, paying for computation requests, and protocol governance. Following the 48-hour auction, there is a 40-day cooling period where tokens can only be staked, with the official Token Generation Event (TGE) expected around August 19th.

Foresight News2m ago

Token FOLD Auction Imminent, What is The Interfold, Supported by Vitalik?

Foresight News2m ago

Bridging Traditional Funds and DeFi: Who Will Capture the Next Decade's RWA Dividends?

Bridging Traditional Funds and DeFi: Who Will Capture the RWA Decade's Value? Tokenization of real-world assets (RWA) is merging the 24/7, permissionless world of DeFi with the time-bound, regulated world of traditional finance. While the complexity is immense, the infrastructure layer enabling this fusion holds significant value. The total value of on-chain tokenized real-world assets now exceeds $33 billion. While tokenized U.S. Treasuries dominate, their share has fallen from 55% to under 45% in a year as other assets like institutional and private credit grow. The key differentiator for on-chain assets is *composability*, allowing capital to be recycled across multiple yield-generating strategies simultaneously. However, tokenized funds remain regulated products with daily NAV updates, KYC requirements, and redemption windows. Bridging these to DeFi requires solving core conflicts: pricing assets between NAV updates, enforcing compliance without stifling DeFi activity, and maintaining accurate accounting during cross-chain transfers. Solutions like the Centrifuge V3 architecture, in collaboration with LayerZero, propose a hub-and-spoke model. A single authoritative hub chain manages NAV, compliance, and accounting, while LayerZero's messaging layer syncs this data to spokechains where tokens can be freely composed in DeFi. This creates a high-barrier, essential middleware layer. The major incentive for institutions is the potential for recursive yield strategies—for example, depositing into a tokenized Treasury fund, borrowing stablecoins against it, and redeploying those funds into another yield-bearing asset, amplifying returns. Yet, risks remain: mismatches between on-chain instant redemptions and off-chain fund limits (as seen in recent private credit fund runs), pricing arbitrage due to NAV lags, and cross-chain settlement failures. Infrastructure must solve these while maintaining regulatory compliance. Just as SWIFT and Visa captured immense value as financial plumbing, the entities that build the robust middleware connecting traditional finance and DeFi are positioned to capture the next decade's value in the RWA space.

Foresight News27m ago

Bridging Traditional Funds and DeFi: Who Will Capture the Next Decade's RWA Dividends?

Foresight News27m ago

CFTC Accuses North Carolina Firm of $14 Million Crypto and Futures Commodity Pool Fraud

The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil action against Trevor Vernon and his firm, Argent Capital Management LLC, for allegedly operating an illegal commodity pool. The defendants are accused of fraudulently raising nearly $14 million from about 60 investors to trade cryptocurrencies, futures, and options. Regulators contend that Vernon misled investors by presenting the scheme as highly profitable through false performance updates, while in reality, the pool incurred consistent and significant losses, totaling at least $8.6 million. The CFTC also alleges that Vernon failed to register the commodity pool with the agency and made misleading statements about its regulatory status. The enforcement action, pending in a North Carolina federal court, seeks restitution for investors, monetary penalties, and permanent trading bans. This case underscores regulators' ongoing focus on policing unregistered investment schemes and ensuring accurate disclosures in crypto and derivatives markets.

TheNewsCrypto50m ago

CFTC Accuses North Carolina Firm of $14 Million Crypto and Futures Commodity Pool Fraud

TheNewsCrypto50m ago

AI Image Generation Without Training Speeds Up 1000%: Method: The Most Concise "Three-Stage Pipeline"

AI image generation is powerful but often feels slow for users. To address this without hardware dependencies, model fine-tuning, or dynamic runtime optimizations, researchers propose MrFlow (Multi-Resolution Flow Matching). This method uses a simple three-stage pipeline: first, generate a low-resolution structural draft; second, upscale it to high resolution in pixel space using a super-resolution model like Real-ESRGAN; third, add a small amount of noise and perform a single-step high-resolution refinement with the original model. This approach shifts most computations to the cheaper low-resolution stage, achieving up to 10.35x end-to-end speedup on models like Qwen-Image while maintaining image quality within ~1% of original outputs. Compared to other training-free acceleration methods, MrFlow offers better speed-quality trade-offs, works with various advanced models, and can be combined orthogonally with distillation techniques for further acceleration. The code and a ComfyUI plugin are openly available.

marsbit1h ago

AI Image Generation Without Training Speeds Up 1000%: Method: The Most Concise "Three-Stage Pipeline"

marsbit1h ago

Robinhood Chain's First Breakout Hit Is a Meme Cat: Retail Investors Dig Out CashCat's 'Original Name,' CEO Jumps on the Trend

Robinhood Chain launched its mainnet on July 1st, promoting tokenized U.S. stocks as its core feature. However, the first asset to gain significant traction was a meme token called CASHCAT, which surged over 1700% in 24 hours, reaching a market cap of $120 million. The token's narrative stems from Robinhood's early history: CEO Vlad Tenev revealed the company's initial working name was "CashCat." CASHCAT has no official ties to Robinhood and declares itself as "pure cat" with zero utility. Tenev added fuel by tweeting on July 8th that the chain is "great for memes," which the community saw as implicit approval. The hype has attracted copycat tokens on other chains like Solana and impersonator accounts promoting scams. The article highlights the extreme volatility and risks associated with this new, illiquid meme token on a fledgling blockchain, cautioning investors to verify contracts and treat any investment as high-risk speculation.

marsbit1h ago

Robinhood Chain's First Breakout Hit Is a Meme Cat: Retail Investors Dig Out CashCat's 'Original Name,' CEO Jumps on the Trend

marsbit1h ago

Trading

Spot
活动图片