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Nvidia introduced its monetary outcomes for the primary quarter of its fiscal 12 months 2027 on Wednesday, posting a whopping $81.615 billion in income, marking its finest quarter ever. Sales of the corporate’s AI platforms to numerous prospects had been document, prompting the corporate to rethink the way it studies its earnings going ahead. From now on, the corporate will not report gross sales of its client graphics playing cards — whether or not for gaming or skilled workloads — as separate product classes. Instead, GPU gross sales will likely be reported below totally different classes.
For the quarter that ended on April 28, 2027, Nvidia’s GAAP income totaled $81.615 billion, up 20% sequentially and up 85% in comparison with the identical quarter a 12 months in the past. Nvidia’s web earnings topped $58.321 billion, up 211% year-over-year (YoY) as its gross margin reached 74.9%. Sales of Nvidia’s Compute & Networking {hardware} hit $74.55 billion (an all-time document), whereas gross sales of its graphics {hardware} totaled $7.065 billion, up 20% sequentially and 85% year-over-year.
New reporting framework
Selling $81.615 billion value of {hardware} in a single quarter is, with none doubt, an unimaginable achievement. However, a extra startling revelation is that Nvidia will stop to report gross sales of gaming {and professional} graphics playing cards as separate classes, which emphasizes as soon as once more that Nvidia’s major enterprise now could be synthetic intelligence and knowledge middle {hardware}, not graphics.
Instead of its conventional product classes, Nvidia will now cut up its income primarily based on deployment markets. Going ahead, the corporate will report two principal platforms: Data Center and Edge Computing. Within Data Center, Nvidia is splitting income into two main sub-segments: Hyperscale, which incorporates hyperscale cloud suppliers and enormous web firms (AWS, Google, Meta, Microsoft, etc.), and ACIE (AI Clouds, Industrial, and Enterprise), which covers enterprise AI factories, industrial deployments, sovereign AI deployments, supercomputing, and other deployments not controlled by hyperscalers. Edge Computing will include PCs, workstations, robotics, automotive, gaming consoles, and telecom infrastructure.
Splitting its data center segment into two major sub-segments — hyperscalers and ACIE —makes a lot of sense for Nvidia. Hyperscalers tend to deploy custom silicon, own AI accelerators, or hardware from competitors, which limits Nvidia’s growth in this segment. By contrast, there are thousands of participants in the broad ACIE category, virtually all of whom can take advantage of Nvidia’s rack-scale platform-based approach, and almost none of them can afford development of custom silicon, which means limitless growth for Nvidia. As a result, Jensen Huang repeatedly emphasized that the ACIE category eventually becomes larger than hyperscale simply because AI is going to become ubiquitous and there are thousands of companies to address.
The ‘new’ results
As Nvidia will from now on report its revenue split differently, the company had to re-report results across the new market platforms for previous physical years. One interesting observation is that the ACIE segment was outperforming the hyperscale segment till Q2 FY2026, when large CSPs began to deploy Nvidia’s GB300 platform for inference, spending tens of billions of dollars per quarter. Now, the ACIE platform has almost caught up.
In the first quarter of its fiscal 2027, hyperscalers bought $37.869 billion worth of hardware from Nvidia, revenue from the ACIE segment reached $37.377 billion, whereas sales of edge computing hardware totaled $6.369 billion. Meanwhile, as noted above, while the bulk of Nvidia’s revenue today comes from sales of compute and networking hardware, the company also sells graphics processors, but going forward, those sales will be reported as part of other segments. For example, sales of graphics hardware topped $7.065 billion in Q1 FY2027, which by far exceeds sales of the edge computing segment and strongly suggests that Nvidia now considers graphics as part of multiple newly established market platforms.
Outlook: $100 billion per quarter approaching
For the second quarter of fiscal 2027, Nvidia expects revenue of about $91 billion ± 2%. The company does not expect to ship any AI hardware to China. Gross margins are projected at around 74.9% on a GAAP basis. Nvidia expects GAAP operating expenses of roughly $8.5 billion.
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