Nvidia released its results for the first quarter of 2027 this Wednesday, once again surpassing market projections. Revenue reached US$81.62 billion, growth of 85% compared to the same period of the previous year and 20% in the previous quarter. Adjusted EPS was $1.87, above the $1.76 to $1.77 range estimated by Wall Street. Pela For the 14th consecutive time, the company surprised analysts with better-than-expected numbers.
The performance cemented Nvidia’s position as a dominant provider of artificial intelligence infrastructure. Revenue exceeded market consensus by approximately US$2.72 billion. Apesar of accelerated growth, shares fell 3% in the session prior to the conference call, fully recovering in the after-market. The market, according to technical indicators, begins to demand that the company demonstrate an even greater expansion of the AI cycle every quarter.
Data centers now represent 92% of total revenue
The data center segment generated US$75.2 billion in revenue, setting a new all-time record with an increase of 92% annually and 21% in the previous quarter. Essa revenue is divided practically equally between two main groups. Hyperscale providers (large cloud operators) accounted for US$37.9 billion, while ACIE (Nuvens of Inteligência Artificial, Industrial, Comercial and Governamental) totaled US$37.4 billion.
Essa balanced distribution weakens pessimistic arguments that Nvidia relies on just a handful of mega-corporate clients. Computing revenue in data centers reached US$60.4 billion, an increase of 77% compared to the previous year. Mais was also significant in the growth of network revenue, which reached US$ 14.8 billion, with an expansion of 199% annually and 35% in the last quarter.
The company transformed its business model. Não only monetizes isolated graphics processors (GPUs). Agora sells complete racks, interconnections between servers, internal data center network infrastructure and the entire ecosystem that allows thousands of chips to function as a single machine. Esse’s expanded scope makes replicating the model by competitors considerably more difficult than simply developing chip alternatives.
Margens gross remains at 75% despite growth
Non-GAAP gross margin remained at 75%, virtually unchanged from the previous quarter, despite revenue growth of 85% annually. Esse performance is remarkable for a company in the context of hypergrowth, with rising memory costs, advanced components, large-scale cooling systems and manufacturing complexity of next-generation chips like the Blackwell.
Management projected a gross margin of 75% ± 50 basis points for the second quarter of fiscal 2027, maintaining stable profitability as operations expand. Analistas monitor this metric because any significant deterioration would signal incompressible cost pressure. Até At the moment, Nvidia absorbs growth without compromising profitability, behavior similar to that of entities with a monopolistic position in their segments.
Há technical nuances to consider. The year-over-year comparison benefits from a negative item in Q1 2026 inventory, implying that some of the margin improvement comes from accounting normalization, not just pure operating gains. Independentemente of origin, the concrete fact is that the company maintains high profitability while scaling the operation.
Operating expenses, however, grow faster. Despesas GAAP operating expenses increased 52% annually to $7.6 billion, while non-GAAP expenses rose 49% to $7.4 billion. Management expects non-GAAP operating expenses of approximately $8.3 billion in the second quarter. Atualmente, this growth does not compromise profitability due to the aggressive increase in revenue, but it represents a point of vigilance for coming quarters, especially during the technological transition to the Rubin chip.
Previsão for Q2 excludes Chinese revenue
Nvidia projected revenue of US$91 billion for the second quarter of fiscal year 2027, with a margin of error of 2%, implying a variation between US$89.18 billion and US$92.82 billion. Essa projection exceeds the consensus estimate of approximately US$87.4 billion. Gross margin was guided at 75% ± 50 basis points.
The most relevant detail of the guidance is a self-imposed limitation: no data center computing revenue originating from China was included in the projected numbers. Nvidia has completely removed China from its base model, meaning that any unlocking of future trading restrictions would create growth opportunity, not just normalize the business. US export Restrições continues to constitute a substantive barrier to the company’s Chinese operations.
Essa transparency benefits Nvidia in two scenarios. If negotiations between the American and Chinese governments improve, the company will have room for a positive surprise. If restrictions persist, the company has already communicated its limitations clearly, avoiding surprise disappointments later. China indeed represents material risk that should not be underestimated by investors.
Riscos identified by the market and management
- Dependência on Hyperscalers: Embora ACIE Has Grown to Equal Hyperscaler Revenue, Largest Cloud Customers Remain Motivated to Diversify Supply and Develop Custom Semiconductors In-House
- Transição Rubin: Entregas starts in the second half of 2027, with variables associated with racks, refrigeration systems and production restrictions capable of creating short-term challenges
- Crescimento of expenses: Despesas of operating expenses rise 49% annually; continuous monitoring necessary to verify that operational leverage is maintained as costs increase
- Restrições commercials: China completely excluded from projections; Any further deterioration in trade relations would create significant headwind for future growth
Retorno shareholder capital reaches US$20 billion in the quarter
In the first quarter of 2027, Nvidia generated free cash flow of $48.6 billion and returned approximately $20 billion to shareholders via dividends and buybacks. The company announced a new share repurchase program with authorization of US$80 billion, which added to the remaining US$39 billion authorized at the end of the period, totals a substantial amount for capital return.
The quarterly dividend increased from $0.01 to $0.25 per share. Esse increase, although modest in terms of absolute yield, signals management’s confidence in the sustainability of cash flow. Nvidia has historically not been an income-oriented company for investors, and this pattern is not likely to change. The real significance is in demonstrating that the company is confident in its ability to generate free cash for investments in supply chain, research and development, simultaneously with greater returns to shareholders.
Current Avaliação reflects earnings growth, not multiple expansion
Nvidia currently trades at approximately 24 times expected EPS for the next 12 months. Esse multiple, although high in historical terms, reflects not speculative expansion, but translation of earnings growth into share price. The company’s price-earnings (P/E) ratio chart shows that, while the share price rose considerably, the P/E multiple fell. Essa divergence shows that the price gain is driven by earnings growth, not valuation premium growth.
Revenue grew 85% annually, non-GAAP gross margin remains at 75%, and revenue projection for the second quarter is $91 billion. Para is a company with this growth profile, competitive position in AI infrastructure and potential for even greater expansion (considering that China was excluded from the projections), the current multiple does not appear disproportionate. Analistas position target prices for the stock considering multiples of 24x to 25x on expected earnings per share for 2029, implying values in the range of US$315 to US$328 per share, with a target price score of US$320.
The underlying thesis does not assume extreme multiple expansion. Assume that the market will continue to pay a similar multiple while profits grow rapidly, converting earnings gains directly into share price gains.