Nvidia posts $81.6 billion Q1 revenue; stock slips 2‑3%

Nvidia announced fiscal Q1 FY2027 revenue of $81.6 billion, an 85% year‑on‑year increase and a 20% rise from the previous quarter. The data‑center segment generated $75.2 billion, accounting for 92% of total revenue, with roughly half of that coming from hyperscale cloud providers such as AWS, Azure, Google Cloud and Meta, and the other half from AI cloud providers, industrial firms, enterprise buyers and sovereign governments – a noted shift in its customer mix.

GAAP operating income reached $53.5 billion, a 65.6% margin, and free cash flow was $48.6 billion against $1.8 billion in capital expenditures, yielding a free‑cash‑flow margin of 59.5%. CEO Jensen Huang described AI infrastructure as a new capital‑goods market.

Following the release, Nvidia shares fell about 2.4% during mid‑day trading, trading near $207 per share, part of a broader semiconductor rotation. Analysts maintained largely positive outlooks, with KeyBanc keeping an Overweight rating and a $330 target, Evercore raising its rating to Outperform with a $413 target, and Deutsche Bank holding a $255 target, while some investors cited insider‑selling rumors and sector risk.