Nvidia: All for the investors – gamers go under

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New quarter, record at Nvidia: The company reports record revenue of 81.6 billion US dollars for the first quarter of its fiscal year 2027. This corresponds to the period from February to the end of April 2026. Compared to the same period last year, revenue grew by 85 percent and by 20 percent compared to the previous quarter. The growth is exceptionally strong, even for Nvidia.

Thanks to the AI boom, the company no longer experiences traditional demand cycles. Nvidia sells everything that partners like chip manufacturer TSMC can produce. Therefore, sequential comparisons are particularly interesting. Operating profit increased by 21 percent compared to the previous quarter to 53.5 billion US dollars.

Net profit rose by 36 percent to 58.3 billion US dollars. It is higher than the operating result because Nvidia booked almost 16 billion US dollars in paper gains from investments in other companies. This is likely primarily due to the Intel investment of originally five billion US dollars. By the reporting date for the business report, the value had approximately quadrupled. In addition, the value of ARM and Coreweave, in which Nvidia also holds stakes, increased during this period.

This also boosted operating cash flow from 36.2 billion to 50.3 billion US dollars. The gross margin stagnates at a high 75 percent.

More spending for investors

Nvidia will invest more money in share buybacks and dividends in the future. The board of directors has approved another buyback program worth 80 billion US dollars with no end date. Together with the existing buffer, Nvidia now has 118.5 billion US dollars available for this. For comparison: This is more than the German manufacturer Infineon is worth (equivalent to just under 103 billion US dollars). In the last quarter alone, Nvidia spent 19.3 billion US dollars on share buybacks.

Nvidia sweetens the investments for investors and increases the dividend by a factor of 25, from one to 25 US cents per share. This raises quarterly payouts from a comparatively low 243 million US dollars to an expected over six billion US dollars.

GeForce disappears from the trend

Meanwhile, gamers have little to celebrate. Nvidia makes it clear once again that the company is no longer interested in them: Nvidia is restructuring its revenue segments to Data Center and Edge Computing. Data Center is further subdivided into “Hyperscale” and “AI Clouds, Industrial and Enterprise.”

Edge Computing combines revenue from desktop PCs, notebooks, game consoles like Nintendo's Switch, workstations, mobile base stations, robotics, and automotive. Nvidia no longer explicitly mentions gaming revenue, driven by GeForce graphics cards, as a separate item for the first time. GeForce thus disappears into obscurity.

Hyperscale, on the other hand, includes revenue from the largest customers, such as Amazon (AWS), Google, Meta, and Microsoft. AI Clouds & Co. are intended to showcase growth markets. Currently, revenue is split approximately one-to-one, with over 37 billion US dollars each. Edge Computing, on the other hand, is tiny at 6.4 billion US dollars. GeForce GPUs likely represent the largest portion there.

Slight dip in the stock market

In the current quarter, Nvidia expects revenue of around 91 billion US dollars. Previously, analysts had expected a revenue forecast of just under 87 billion US dollars. Neither the current revenue nor the outlook include direct sales of AI accelerators to China.

Meanwhile, the stock market seems to be struggling with the restructuring. In after-hours trading, the stock fluctuates with a loss of up to 1.5 percent.

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(mma)