Nvidia projected 77% revenue growth to $78 billion in Q1, exceeding analyst expectations
The company's data center business accounts for over 91% of total sales
Vera Rubin system is being shipped to customers with 10x better performance per watt
Growth is expected to slow dramatically after fiscal 2027
Nvidia is not including any China data center revenue in its forecasts
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Nvidia Corp. reported its 11th consecutive quarter of revenue growth exceeding 55% on Wednesday, projecting a 77% year-over-year increase to approximately $78 billion for the first quarter, driven by soaring demand for AI chips as the company ramps production of its next-generation Vera Rubin system. This forecast significantly surpassed analyst expectations of $72.6 billion and marked the fastest growth rate in a year, slightly below the 78% growth recorded in the quarter ending January 2025. The chipmaker's data center business, which houses its AI graphics processing units, now constitutes over 91% of total sales, underscoring the company's dominance in the AI hardware market.
The acceleration in growth comes as Nvidia begins shipping samples of its Vera Rubin system, the successor to Grace Blackwell, which features 72 next-generation graphics processing units promising 10 times more performance per watt than previous models. During the earnings call, Chief Financial Officer Colette Kress revealed that the company expects every model builder and cloud provider to eventually deploy the Vera Rubin system, and that growth this year will exceed previous projections for a $500 billion revenue opportunity between Blackwell and Rubin platforms. Nvidia has also secured inventory and supply commitments to address future demand, with shipments extending into calendar 2027, according to Kress.
Despite its current market dominance, Nvidia faces increasing competition from Advanced Micro Devices, which plans to release its Helios rack-scale AI system later this year, following Meta's commitment to deploy up to 6 gigawatts of AMD GPUs. Additionally, some of Nvidia's largest customers, including Amazon and Google, are developing in-house AI chips to power their data centers, presenting a potential risk to future results. Looking ahead, while Nvidia expects dramatic growth this year, projections indicate a significant slowdown from 63% to 30%, 11.5%, and 3% in the subsequent years. CEO Jensen Huang emphasized the company's position in the evolving AI landscape, stating that 'compute equals revenue' as businesses increasingly adopt agentic AI applications. However, the company's outlook notably excludes any potential data center revenue from China, where export controls have prevented significant sales despite recent policy discussions.
🏷️ Themes
AI Hardware Market, Corporate Growth, Technological Innovation
Vera Florence Cooper Rubin (; July 23, 1928 – December 25, 2016) was an American astronomer who pioneered work on galaxy rotation rates. She uncovered the discrepancy between the predicted and observed angular motion of galaxies by studying galactic rotation curves, the first evidence for the galaxy...
Nvidia Corporation ( en-VID-ee-ə) is an American technology company headquartered in Santa Clara, California. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, it develops graphics processing units (GPUs), systems on chips (SoCs), and application programming interfaces (APIs) for...
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems.
Since IT operations are crucial for business continuity, a data center generally includes redundant or backup components and infrastructure for power supply, data com...
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In this article NVDA Follow your favorite stocks CREATE FREE ACCOUNT Jensen Huang, chief executive officer of Nvidia Corp., speaks during the 2026 CES event in Las Vegas, Nevada, US, on Tuesday, Jan. 6, 2026. Siemens and Nvidia announced an expansion of their strategic partnership to develop industrial and physical AI solutions to bring AI-driven innovation to industrial workflow. Photographer: Bridget Bennett/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty Images Nvidia just reported its 11th straight quarter of revenue growth above 55% as the leading tech names keep snapping up the company's AI chips. Already the world's most valuable public company, growth is now reaccelerating. In its earnings report Wednesday, Nvidia said year-over-year revenue will surge about 77% this quarter to roughly $78 billion. That would mark the fastest growth rate for any period since the quarter ending January 2025 , when expansion came in slightly higher at 78%. Its forecast sailed past the $72.6 billion average analyst estimate, according to LSEG. Revenue in the fourth quarter jumped 73%, also topping estimates, following expansion of 62% in the prior period. The data center business, home to Nvidia's AI graphics processing units, now accounts for over 91% of sales. The chipmaker's optimistic outlook comes as the company ramps production of Vera Rubin, its next rack-scale system for AI that will succeed Grace Blackwell. Nvidia says the system's 72 next-generation Rubin graphics processing units are expected to deliver 10 times more performance per watt, compared to their predecessors. watch now VIDEO 13:59 13:59 First look at Vera Rubin, Nvidia’s next AI system that’s 10 times more efficient Tech Finance chief Colette Kress said on the earnings call after the report that the company shipped its "first Vera Rubin samples to customers earlier this week," and that Nvidia expects every model builder and cloud provider to eventually deploy the system. She said the company now e...
