Nvidia Posts $81.6 Billion Q1 Revenue as Bank of America Lifts Target to $350
Updated
Updated · Barchart · May 27
Nvidia Posts $81.6 Billion Q1 Revenue as Bank of America Lifts Target to $350
6 articles · Updated · Barchart · May 27
Revenue jumped 85% year over year to $81.6 billion in Nvidia’s fiscal 2027 first quarter, while adjusted EPS surged 140% to $1.87, extending the company’s AI-fueled run.
Data center sales drove the beat, rising 92% to $75.2 billion as demand for Blackwell systems and networking gear stayed strong across hyperscalers, enterprises and sovereign AI projects.
Guidance pointed higher again, with Nvidia forecasting about $91 billion in Q2 revenue, but the stock slipped after earnings as investors questioned how long its margins and market share can withstand custom-chip competition.
Bank of America kept a Buy rating and raised its price target to $350 from $320, arguing AI infrastructure spending is still accelerating and Nvidia remains the leading full-stack AI compute play.
The debate now centers on durability: Nvidia is pushing into a potential $200 billion CPU market, while China restrictions and in-house chips from major customers remain key risks.
With AI spending nearing $1 trillion annually, will the power grid become the biggest bottleneck for technological growth?
Can Nvidia's new chips stop its biggest customers from becoming its biggest competitors?
As 'agentic AI' automates entire jobs, what is the true cost of this multi-trillion-dollar productivity boom?
Nvidia’s $81.6 Billion Q1 FY2027: Record AI Revenue, Blackwell Ramp, and Investor Uncertainty
Overview
Nvidia delivered record-breaking results in Q1 FY2027, with total revenue soaring to $81.6 billion, driven mainly by its Data Center division. The company achieved high gross margins and strong net income, reflecting its leadership in AI and high-performance computing. Despite these stellar numbers and shareholder-friendly moves like a major share repurchase and dividend increase, Nvidia’s stock dipped after the report, showing that investors may have already priced in much of the expected growth. Analysts remain optimistic, citing rapid adoption of Nvidia’s new Blackwell platform and strong demand, but also note risks from hyperscaler competition and evolving market dynamics.