Leading designer of graphics chips Nvidia (NASDAQ: NVDA) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 85.2% year on year to $81.62 billion. On top of that, next quarter’s revenue guidance ($91 billion at the midpoint) was surprisingly good and 5.7% above what analysts were expecting. Its non-GAAP profit of $1.87 per share was 5.4% above analysts’ consensus estimates.

Is now the time to buy NVDA? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Nvidia’s first quarter results were shaped by robust demand for AI infrastructure and significant momentum in its data center segment, though the market responded negatively following the announcement. Management attributed the strong revenue and margin performance to the rapid adoption of its Blackwell architecture across hyperscalers, AI-native cloud providers, and sovereign customers. CEO Jensen Huang emphasized that Nvidia’s platform supports “every frontier AI model,” with growth driven by both traditional hyperscale data centers and an expanding set of AI-native and enterprise workloads. Demand for Blackwell systems was described as “the fastest product ramp in our company’s history,” fueling growth in both computing and networking revenues.

Looking ahead, Nvidia’s guidance is rooted in expectations for continued acceleration in AI infrastructure build-outs and the upcoming introduction of its Vera and VeraRubin CPUs, which management believes will open new markets for the company. CFO Colette Kress noted that sequential revenue growth is projected to remain driven by data center sales, with expansion fueled by investments in new product lines and increased R&D. CEO Jensen Huang stated, “Agentic AI has arrived,” highlighting the company’s focus on supporting both hyperscale and emerging AI-native data centers, as well as the anticipated ramp of its VeraRubin architecture starting next quarter.

Key Insights from Management’s Remarks

Management credited the quarter’s results to Blackwell architecture adoption, expanded data center deployments, and segment realignment to better reflect growth drivers.

• Blackwell architecture momentum: Management highlighted that demand for Blackwell GPUs, especially the GB300 and NVL72, was broad-based, with hyperscale and frontier AI model builders deploying “hundreds of thousands” of units. The Blackwell product line was described as enabling the fastest ramp in Nvidia’s history.

• Segment reporting changes: Nvidia introduced a new segmentation framework, now reporting by Data Center (split into Hyperscale and ACIE—AI clouds, industrial, and enterprise) and Edge Computing. The change reflects the expanding diversity of AI use cases and aims to provide greater visibility into growth opportunities beyond hyperscale clients.

• AI-native and sovereign customers: The company saw rapid adoption from AI-native cloud providers and sovereign customers, with management noting that sovereign revenue increased over 80% year-on-year and Nvidia infrastructure is now deployed in nearly 40 countries. This diversification was cited as a key driver of revenue acceleration.

• Data center networking and ecosystem strength: Spectrum-X, Nvidia’s Ethernet platform for AI, was described as “larger than all Ethernet network peers combined.” Data center networking revenue nearly tripled year-on-year, reflecting the need for integrated solutions across compute and network layers.

• Supply chain and capacity investments: Management discussed scaling supply commitments to $145 billion to secure enough inventory for anticipated demand. Nvidia also emphasized investing strategically in R&D and its ecosystem to sustain its leadership in AI infrastructure.

Drivers of Future Performance

Nvidia expects ongoing AI infrastructure investment, new product launches, and further market expansion to drive growth, but highlights supply constraints and market diversity as key factors.

• Data center and AI factory expansion: Management expects continued acceleration in AI infrastructure buildouts, especially as enterprises and governments invest in their own AI data centers. The company anticipates that both hyperscale and “second category” customers—AI-native, enterprise, and sovereign—will drive future demand.

• New product ramps and CPU launch: The upcoming launch and ramp of Vera and VeraRubin CPUs, designed for agentic AI tasks, are expected to create new growth opportunities. Management sees standalone Vera CPU sales unlocking a $200 billion addressable market and expects high initial demand from major hyperscalers and system makers.

• Supply chain risks and geographic uncertainty: While Nvidia has increased supply commitments, management cautioned that supply constraints may persist given the scale of demand. Uncertainty remains regarding shipments to China, as management is not including any China data center compute revenue in its outlook due to regulatory factors.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will focus on (1) the pace of adoption and ramp of Vera and VeraRubin CPUs, (2) the evolution and impact of the new ACIE and Edge Computing segments, and (3) supply chain execution as Nvidia seeks to meet extraordinary global demand. We will also monitor developments around regulatory constraints for shipments to China and the ongoing diversification of Nvidia’s customer base.

Nvidia currently trades at $220.66, down from $223.58 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

High Quality Stocks for All Market Conditions

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that have made our list include now familiar names such as ServiceNow (+163% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.