Nvidia Corporation has announced a record-breaking revenue of $44.1 billion for the first quarter of fiscal year 2026, marking a 69% increase compared to the same period last year. This surge is primarily driven by the company’s data center segment, which contributed $39.1 billion, accounting for approximately 88% of the total revenue.
Data Center Dominance
The significant growth in Nvidia’s data center revenue is attributed to the escalating global demand for AI infrastructure. The company’s new Blackwell architecture has played a pivotal role in this expansion, with major cloud providers and partners like Microsoft rapidly adopting Nvidia’s powerful Blackwell NVL72 AI supercomputer.
Gaming Segment Resurgence
Nvidia’s gaming division also experienced a notable resurgence, generating $3.8 billion in revenue, a 42% year-over-year increase. This growth is fueled by the launch of new GPUs and anticipation surrounding the upcoming Nintendo Switch 2 processor.
Challenges in China
Despite the impressive financial performance, Nvidia faces challenges due to new U.S. export restrictions on its H20 chips to China, introduced on April 9, 2025. These restrictions have led to a $4.5 billion charge related to excess inventory and purchase obligations. The company was unable to ship an additional $2.5 billion worth of H20 products in the first quarter.
Future Outlook
Looking ahead, Nvidia projects second-quarter revenues of approximately $45 billion, plus or minus 2%. However, the company anticipates an $8 billion impact due to the ongoing export restrictions affecting H20 chip sales to China.
Market Response
Following the earnings announcement, Nvidia’s stock experienced a surge of nearly 5% in after-hours trading, reflecting investor confidence in the company’s robust performance and growth prospects despite geopolitical challenges. Investopedia
