Nvidia Stock Earnings: ($NVDA) Falls After 1.3% Gain Despite $81.6B Revenue

NVIDIA remained one of the most-watched US stocks on 20 May 2026 after reporting record quarterly revenue of $81.6 billion for Q1 FY27, beating Wall Street expectations, driven by massive AI infrastructure demand. Even after a 1.3 percent gain earlier in the trading day, Nvidia stock slipped in the extended session as investors reacted to high expectations, China-related concerns, and rising operating costs. NVIDIA continues to dominate the artificial intelligence chip market, while broader semiconductor stocks, including AMD, Intel, Broadcom, and TSMC, also stayed in focus following the earnings release. Investors are closely tracking whether Nvidia can maintain its explosive AI-driven growth momentum through FY27.

NVIDIA earnings highlights and NVDA revenue growth

• Record revenue growth: Nvidia reported Q1 FY27 revenue of $81.6 billion, up 85 percent year over year and 20 percent sequentially, beating Wall Street estimates of $78.9 billion.
• EPS surprise: Adjusted earnings per share came in at $1.87 versus analyst estimates of around $1.75 to $1.79, while GAAP EPS reached $2.39.
• Data center dominance: Nvidia’s data center revenue surged to a record $75.2 billion, jumping 92 percent year over year as AI cloud demand accelerated globally.
• Net income jump: Quarterly net income rose to $58.3 billion, up 211 percent from last year, showing strong profitability despite rising expenses.
• AI spending boom: Major tech firms, including Microsoft, Google’s Alphabet, Amazon, and Meta, are expected to spend over $700 billion on AI infrastructure in 2026, supporting Nvidia’s demand.

Why Nvidia stock fell despite strong earnings

• High expectations pressure: Nvidia’s stock fell after earnings because investors expected even stronger guidance after the stock’s massive rally in 2026.
• China revenue concerns: Nvidia said its Q2 outlook assumes zero China data center compute revenue due to ongoing US export restrictions.
• Operating expense rise: Operating expenses increased 52 percent year over year to $7.6 billion, raising concerns about future margin pressure.
• Profit booking activity: Traders booked profits after Nvidia stock touched record highs near a $5.5 trillion market value earlier this year.
• Competitive pressure: AMD, Intel, Amazon, and Google continue developing AI chips, increasing long-term competition in the semiconductor sector.

OUR ANALYSIS: Nvidia outlook and investor focus

• Guidance strength: Nvidia forecast Q2 FY27 revenue of $91 billion, above analyst expectations of $87 billion, showing confidence in AI demand.
• Shareholder returns: Nvidia announced an additional $80 billion share buyback and raised its quarterly dividend from $0.01 to $0.25 per share.
• Long-term AI leadership: CEO Jensen Huang said agentic AI and AI factories are expanding rapidly across industries, keeping Nvidia at the center of the AI boom.
• Investor question: Why are investors still cautious despite strong results? Markets now expect near-perfect execution from Nvidia after several quarters of explosive growth, making even strong beats less surprising.

Conclusion

NVIDIA delivered another blockbuster quarter with $81.6 billion in revenue, record AI data center growth, and stronger-than-expected guidance, but NVDA stock still slipped as investors weighed valuation concerns and China-related risks. The company remains the leading force in artificial intelligence infrastructure, while Wall Street now watches whether Nvidia can continue outperforming amid rising competition and massive market expectations.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.