Nvidia reports $81.6bn revenue as Huang declares AI demand 'parabolic'
Nvidia raised its dividend 25-fold and authorised $80bn in buybacks, while citing $1tn in visibility for Blackwell and Vera Rubin platforms through 2027.
Nvidia has reported fiscal first-quarter revenue of $81.6 billion, marking an 85 per cent increase year-on-year. The results were underpinned by a 92 per cent surge in data centre sales, which totalled $75.2 billion. Chief Executive Officer Jensen Huang characterised the current artificial intelligence demand environment as 'parabolic', attributing the acceleration to the emergence of agentic AI systems capable of reasoning and planning.
Profit growth outpaced revenue expansion, with non-GAAP earnings per share rising 140 per cent year-on-year to $1.87. This increase was supported by soaring revenue and year-over-year gross margin expansion. The company also announced a significant shift in capital return policy, raising its quarterly dividend from $0.01 to $0.25 per share and authorising an additional $80 billion in share repurchases.
Management provided strong forward-looking guidance, citing approximately $1 trillion in revenue visibility for the Blackwell and Vera Rubin platforms through calendar 2027. To support this pipeline, total supply commitments, including inventory and prepaid purchases, reached approximately $145 billion. Inventory levels specifically rose to $25.8 billion from $21.4 billion in the prior quarter, reflecting aggressive supply chain positioning ahead of expected orders.
Second-quarter revenue guidance was set at approximately $91.0 billion, assuming no data centre compute revenue from China. Chief Financial Officer Colette Kress noted that the rental price of older H100 chips in the cloud has risen approximately 20 per cent so far this year, indicating sustained demand for legacy hardware alongside next-generation platforms.
Despite the robust figures, risks remain regarding hyperscaler spending discipline and the development of custom silicon by major customers. The Motley Fool’s Stock Advisor team did not include Nvidia in their current list of 10 best stocks to buy, contrasting with the company's strong performance and Huang’s conviction that the build-out is in its middle stages rather than at a peak.
