By Danny Vena, CPA, The Motley Fool
Publication Date: 2026-05-20 22:01:00
As one of the foremost providers of the graphics processing units (GPUs) powering artificial intelligence (AI), Nvidia (NASDAQ: NVDA) has become a bellwether for the state of AI. As such, Wall Street and Main Street alike were pulling up their chairs, popcorn at the ready, ahead of the company’s quarterly financial report after the market close on Wednesday.
Questions about the overall adoption of AI, increasing competition, and a complex macroeconomic and geopolitical backdrop had investors wondering if Nvidia could deliver on the future promise of AI, and they were not disappointed.
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The results are irrefutable
It turns out that concerns that Nvidia growth might slow turned out to be unfounded. In fact, it was quite the opposite: sales continued to accelerate. For its fiscal 2027 first quarter (ended April 26), the company generated record revenue of $81.6 billion, up 85% year over year and 20% quarter over quarter. This drove adjusted earnings per share (EPS) of $1.87, which surged 140%. The results were partially driven by Nvidia’s impressive 74.9% gross margin.
For context, analysts’ consensus estimates were calling for revenue of $79.12 billion and adjusted EPS of $1.77, so Nvidia sailed…
