Nvidia Reports Record $81.6 Billion Quarterly Revenue, Restructures Reporting into Data Center and Edge Computing Segments
May 20, 2026
Nvidia Reports Record $81.6 Billion Quarterly Revenue, Restructures Reporting into Data Center and Edge Computing Segments
Nvidia has posted record quarterly revenue of $81.6 billion for the first quarter of fiscal 2027, marking an 85 percent increase year-over-year and a 20 percent rise from the prior quarter. The milestone underscores the company’s dominant position in the AI chip market, driven by surging demand for accelerated computing infrastructure across cloud providers and enterprise customers.
Data center revenue for the three-month period ending April 26 reached $75.2 billion, representing a 92 percent jump from a year ago and a 21 percent sequential gain. Alongside the earnings announcement, Nvidia revealed a significant shift in its financial reporting structure, splitting its results into two primary segments: data center and Edge computing. The company said the new framework “better reflects its current and future growth drivers.”
Within the data center segment, Nvidia will now report two submarkets: Hyperscale and ACIE, which stands for AI Clouds, Industrial, and Enterprise. The Hyperscale category includes revenue from public cloud providers, while ACIE covers purpose-built AI data centers and so-called AI factories. Under the previous reporting structure, data center compute revenue for the quarter stood at $60.4 billion, up 77 percent year-over-year and 18 percent sequentially. Data center networking revenue also hit a record, surging 199 percent year-over-year and 35 percent quarter-over-quarter to $14.8 billion.
The newly defined Edge computing segment, which encompasses data processing devices for agentic and physical AI, generated $6.4 billion in revenue for the quarter, up 29 percent year-over-year and 10 percent sequentially. This segment includes products for PCs, game consoles, workstations, AI-RAN base stations, robotics, and automotive applications.
Looking ahead, Nvidia forecast second-quarter revenue of $91 billion, plus or minus two percent. The company noted that its projections do not include any anticipated compute revenue from China. “The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” said Jensen Huang, Nvidia’s CEO. “Agentic AI has arrived, doing productive work, generating real value, and scaling rapidly across companies and industries. Nvidia is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced — from hyperscale data centers to the Edge.”
The restructuring highlights Nvidia’s strategic focus on capturing growth beyond traditional cloud data centers, as AI workloads increasingly move to edge environments. By separating Edge computing as a distinct reporting segment, the company aims to provide investors with clearer visibility into its diversification across the AI value chain, from massive hyperscale clusters to decentralized AI inference at the network edge.
Source: datacenterdynamics
