Via designrush.com
The chipmaker's data center business now accounts for 92% of total revenue, with Q2 guidance pointing to $91B in sales
Five years ago, Nvidia’s data center business was pulling in about $1 billion per quarter. In its most recent quarter, that number hit $75.2 billion.
Nvidia reported fiscal Q1 2027 results (ending April 26, 2026) that showed data center revenue climbing 92% year-over-year from $39.1 billion and 21% sequentially. Total company revenue reached $81.6 billion, an 85% jump over the same period last year, with the data center segment now responsible for roughly 92 cents of every dollar Nvidia earns.
The Blackwell effect #
The primary engine behind this surge is demand for Nvidia’s Blackwell architecture, its latest generation of AI accelerators. Paired with networking products like InfiniBand, Spectrum-X Ethernet, and NVLink, the Blackwell platform has become the infrastructure backbone for companies racing to build and scale AI systems.
Hyperscale customers accounted for roughly half of data center revenue at $37.9 billion. The other half, $37.4 billion, came from what Nvidia categorizes as ACIE (AI, cloud, and enterprise infrastructure).
CEO Jensen Huang pointed to “agentic AI” as a key demand driver during the earnings call around May 20-21, 2026. Agentic AI refers to systems that can autonomously plan, reason, and execute tasks.
Net income for the quarter came in at $58.3 billion. Gross margins held steady at 74.9% on a GAAP basis and approximately 75% non-GAAP.
China-shaped hole in the numbers #
One notable detail buried in the results: Nvidia shipped zero Data Center Hopper products to China during the quarter. That compares to $4.6 billion in China-bound Hopper revenue in the year-ago period. US export restrictions have effectively shut Nvidia out of one of the world’s largest AI markets, at least for its most advanced chips.
The fact that Nvidia still posted 92% data center growth despite losing $4.6 billion in annual run-rate China revenue tells you something about the ferocity of demand everywhere else.
What $91B in Q2 guidance actually means #
Nvidia guided for $91 billion in revenue next quarter, which would represent sequential growth of roughly 12% and put the company on a run-rate approaching $360 billion annually.
The 92% concentration of revenue in data centers does introduce a risk profile worth noting. Nvidia is essentially a one-segment company now, with gaming, automotive, and professional visualization together contributing just 8% of revenue.
The company’s trajectory from $1 billion in quarterly data center revenue in late 2019 to $75.2 billion in early 2026 represents one of the most dramatic revenue ramps in corporate history.
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