Nvidia Q1 Revenue Leaps 69% to $44B on Robust AI Data Centre Demand and Record Gaming Segment Growth

The Nvidia (NASDAQ:NVDA) stock was up almost 5% in premarket trading on Thursday after the AI giant posted a 69% year-over-year (YoY) jump last night in fiscal Q1 revenue to £32.72 billion ($44.06 billion) from £19.34 billion ($26.04 billion). Earnings per diluted share increased 27% YoY to £0.56 ($0.76) from £0.45 ($0.60).

The tremendous feat was driven by a 73% YoY increase in data centre revenue to £29.04 billion ($39.1 billion). During the quarter, the company announced building AI factories in the US to manufacture AI supercomputers as well as introduced the Nvidia Blackwell Ultra to scale AI reasoning models. Nvidia also announced partnerships with Alphabet and Google to advance agentic AI solutions.

'Our breakthrough Blackwell NVL72 AI supercomputer — a "thinking machine" designed for reasoning— is now in full-scale production across system makers and cloud service providers,' said Nvidia CEO Jensen Huang.

'Global demand for NVIDIA's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognising AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the centre of this profound transformation,' he stated in the press release.

Gaming and AI PC Segment Sees Strong Demand

Nvidia's gaming revenue in Q1 reached a record £2.82 billion ($3.8 billion), 42% higher than a year earlier. The revenue jump could be attributed to the company's announcement of the GeForce RTX 5070 and 5060 graphics cards integrated with Blackwell, as well as the launch of Nvidia DLSS 4 for over a hundred games and AI-powered DLSS for the Nintendo Switch 2 for 4K gaming.

Robotics Business Surges in Q1

Nvidia's automotive and robotics segment increased 72% YoY to £421.19 million ($567 million) for the quarter-ended 27th April as the company partnered with General Motors to develop next-gen vehicles using Nvidia Omniverse, Nvidia Cosmos, and Nvidia Drive AGX. It also launched Nvidia Halos, a unified safety system that combines the company's automotive hardware, software and advanced AV safety AI research.

Nvidia's professional visualisation segment revenue in Q1 was up 19% YoY to £378.10 million ($509 million). During the quarter, the company announced the Nvidia RTX Pro Blackwell series for servers and workstations as well as launched the Nvidia DGX Spark and DGX Station personal AI supercomputers powered by the Grace Blackwell platform.

Company Raises Guidance Despite a $4.5 Billion Charge

Nvidia said the new requirements announced by the US government in April, mandating the company to acquire a license for exporting its H20 products to China, resulted in a £3.34 billion ($4.5 billion) charge in Q1 due to excess inventory and purchase obligations as demand for H20 products nosedived.

The company declared a quarterly dividend of £0.007 ($0.01) per share payable on 3rd July to shareholders of record on 11th June. The company expects higher revenue of roughly £33.42 billion ($45 billion) in fiscal Q2 on rising demand for AI computing and infrastructure globally.

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