While investors once again yawned when Nvidia (NVDA 1.86%) reported its fiscal first-quarter earnings after the bell on May 20, the results were still nothing short of extraordinary. Despite the muted investor reaction, the company continues to show why it remains the dominant force in the artificial intelligence (AI) infrastructure space.
Let’s dig into Nvidia’s fiscal Q1 results and prospects to see if the stock is still a buy.
Today’s Change
(-1.86%) $-4.09
Current Price
$215.42
Key Data Points
Market Cap
$5.2T
Day’s Range
$214.84 – $221.07
52wk Range
$132.92 – $236.54
Volume
5.8M
Avg Vol
171.3M
Gross Margin
74.15%
Dividend Yield
0.02%
Revenue continues to skyrocket
Given Nvidia’s massive size, it’s mind boggling how the company can continue to grow its revenue at such a breakneck pace. After all, this is the largest company in the world with an over $5 trillion market capitalization. Even crazier is that its revenue growth just keeps accelerating.
For its fiscal Q1, Nvidia’s revenue surged 85% year over year to $81.62 billion. That’s up from the 73% growth it saw in Q4 2025, the 62% growth it recorded in Q3 2025, and 56% growth it posted in Q2 2025. Meanwhile, it projected its revenue growth to once again accelerate in Q2 2026.
Adjusted earnings per share (EPS), meanwhile, surged 140% to $1.87 from $0.78. The results easily topped the analyst consensus, which was looking for adjusted EPS of $1.76 on sales of $78.86 billion, as compiled by the London Stock Exchange Group.
Data center segment revenue yet again led the way, soaring 92% year over year to $75.2 billion. The company changed its reporting in the quarter, deciding to break up its data center segment into two market platforms. Hyperscale revenue surged 115% to $37.9 billion, while AI cloud, industrial, and enterprise (ACIE) revenue jumped 74% to $37.4 billion.
Within the ACIE subsegment, it said AI cloud revenue more than tripled, while it doubled the number of data center partners with more than 10 megawatts of power. Meanwhile, it said its sovereign revenue climbed more than 80%. While it has licenses to sell its H200 chips to Chinese customers, it has yet to sell any.
Previously, the company broke out its data center revenue into compute and networking, although it did give the information on its earnings call, saying compute revenue jumped 77% to $60 billion, while networking revenue nearly tripled to $15 billion. It boasted that its Spectrum-X Ethernet platform is larger than all competitors combined, while InfiniBand revenue quadrupled.
Nvidia also consolidated its other segments into one called edge computing. Revenue for the new segment climbed 29% to $6.4 billion. The company called out physical AI, saying revenue has now surpassed $9 billion over the past year.
The company continues to throw off an insane amount of cash. It produced operating cash flow of $50.3 billion and free cash flow of $48.6 billion in the quarter. It ended its fiscal period with cash and marketable securities of $80.5 billion and $8.5 billion in debt. It also has $43.4 billion in non-marketable securities, which are its investments in non-public companies. It just upped its buyback plan by $80 billion, with $39 billion still remaining on the current authorization.
Looking ahead, Nvidia guided for fiscal Q2 revenue to come in around $91 billion, which would represent 95% growth. The outlook assumes no data center revenue contribution from China. It said it is working to secure supply to meet the huge demand it is seeing.
Image source: The Motley Fool.
Is the stock still a buy?
Nvidia just continues to hit it out of the park. The results demonstrate the momentum the company is seeing not just with the large hyperscalers but also within the neocloud, enterprise, and sovereign markets, as well. The company’s transition from designer of graphics processing untis (GPUs) to a full-fledge AI infrastructure solutions provider can also been seen in its huge networking growth, as that all goes into its end-to-end AI server racks.
Meanwhile, the company is looking to add another growth driver with its new Vera Rubin central processing unit (CPU) platform, set to launch in Q3. With the ratio of GPUs to CPUs expected to shrink with the rise of agentic AI, this is another big potential market for Nvidia to go after. And while early, it also looks like it sees physical AI as being a nice growth market in the coming years.
Despite its tremendous growth, Nvidia’s stock is still attractively valued, trading at a forward price-to-earnings (P/E) ratio of around 25 times based on the 2026 analyst consensus, which is cheap given its growth. While the stock may not have jumped on the news of another great quarter, as investors seem more preoccupied looking for the next big breakout AI name, investors can still buy this market leader given its valuation and still tremendous growth opportunities ahead.
