NVIDIA Q1 FY27 data-center revenue hits $75.2B — 92% of total sales, doubled YoY, but stock slides on guidance
NVIDIA reported Q1 fiscal-2027 results on May 20: data-center revenue $75.2 billion, nearly double from a year earlier, accounting for 92% of total sales. The stock slid despite the absolute beat because guidance signaled a softer second half — the moment customers shift from training-rack purchases to inference-rack consumption that may not be NVIDIA-only.
The customer mix tells the structural story. NVIDIA's data-center revenue is concentrated in a handful of hyperscalers (Microsoft, Meta, Google, AWS) plus the neocloud cohort (CoreWeave, Crusoe, Lambda, Nebius, Nscale) and a slowly-growing sovereign-AI segment. Training-rack purchases by that cohort are still growing, but Q1's beat was driven by inference rack-builds, where the company faces competitive pressure from Cerebras (post-IPO at $100B mcap), Groq (acqui-hired by NVIDIA itself for $20B in February), and AMD's Instinct line.
The Goldman Sachs 24× token forecast on the same week is what makes the inference-mix question existential rather than incremental. If the agentic-AI workload is going to consume two orders of magnitude more tokens by 2030, then the inference share of total compute revenue is going to dominate the training share by a wide margin. Whether NVIDIA can hold the same 92%-of-sales gravity in that world is the question the guidance cut implicitly raised. The market answered by selling the stock on a quarter that should have been celebrated.
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