Nvidia has delivered another blockbuster financial quarter, posting record revenue of $81.6 billion as surging global demand for artificial intelligence infrastructure continues to fuel unprecedented growth for the chipmaker.

The results, announced for the first quarter of Nvidia’s fiscal 2027 ending April 26, exceeded Wall Street expectations and reinforced the company’s dominant position at the centre of the global AI race.

Revenue climbed 85 per cent compared with the same period last year and rose 20 per cent from the previous quarter, highlighting the extraordinary pace of AI-related spending by technology companies worldwide.

Net profit also surged dramatically, reaching $58.3 billion compared with $18.8 billion a year earlier.

Data centre business powers Nvidia’s growth

The strongest performance came from Nvidia’s data centre division, which produces the powerful graphics processing units, or GPUs, used to train and run artificial intelligence systems.

The company’s data centre revenue hit a record $75.2 billion, marking a 92 per cent increase from the same period last year.

Originally developed to process high-speed graphics for video games, GPUs have evolved into the core technology behind modern artificial intelligence systems, powering everything from AI chatbots to advanced cloud computing platforms.

That transformation has helped Nvidia become one of the world’s most valuable companies as governments and technology firms rapidly expand AI infrastructure investments.

AI demand continues despite market concerns

Despite repeated concerns from analysts about whether the AI spending boom could eventually slow down, demand for Nvidia’s hardware remains exceptionally strong.

Since its previous earnings report in February, Nvidia has announced several major AI-related partnerships and investments, including:

  • A $10 billion investment in Anthropic
  • A major AI agreement with Meta
  • A long-term infrastructure partnership with CoreWeave aimed at developing five gigawatts of AI facilities by 2030

For the current quarter, Nvidia forecast revenue of approximately $91 billion, signalling expectations of continued rapid expansion.

China remains a key challenge in the AI chip race

Nvidia also acknowledged ongoing geopolitical tensions affecting its business in China.

The company stated that its revenue outlook does not currently include expected data centre sales from China, where advanced US AI chips remain subject to export restrictions linked to national security concerns.

Nvidia CEO Jensen Huang recently said he believes China could eventually reopen its market to high-end American AI chips capable of training and operating advanced AI systems.

The issue remains part of the wider technological rivalry between the United States and China, with both nations competing aggressively for leadership in artificial intelligence.

Nvidia’s advanced H200 AI chip had previously been restricted from sale in China under US export controls. At the same time, China is investing heavily in domestic semiconductor development to reduce reliance on American technology.

Investors remain cautious despite record results

Although Nvidia’s financial performance surpassed expectations, investor reaction remained relatively cautious.

The company’s shares slipped by more than one per cent during after-hours trading following the earnings announcement, suggesting some investors remain concerned about future competition, regulation, and the sustainability of the current AI investment surge.

Even so, Nvidia’s latest results further cement its role as one of the biggest winners of the global artificial intelligence revolution.

Reported by Gold 101.3 FM, UAE’s No.1 Malayalam radio station.