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The company continues to dominate the artificial intelligence (AI) computing market and remains one of the biggest beneficiaries of the ongoing AI boom. NVIDIA’s powerful datacenter graphics processing units (GPUs) have become the backbone of modern AI infrastructure, supporting everything from cloud computing to generative AI applications. With enterprises and cloud providers continuing to increase AI spending aggressively, NVIDIA appears well-positioned to deliver another impressive quarter.
What to Expect From NVIDIA’s Q1 Results?
NVIDIA expects first-quarter fiscal 2027 revenues of roughly $78 billion (+/-2%), highlighting the massive acceleration in AI adoption worldwide. This represents a remarkable leap from prior years as more businesses allocate significant capital toward AI-driven growth initiatives. The Zacks Consensus Estimate currently stands at $78.75 billion, suggesting a staggering 78.7% jump from the year-ago figure and sequential growth of nearly 15.5%.
The consensus mark for first-quarter earnings is pegged at $1.77, implying a year-over-year surge of 118.5% and sequential growth of 9.3%. Earnings surpassed the Zacks Consensus Estimate three times in the trailing four quarters while missing on one occasion, the average surprise being 2.93%.
Click here to know how NVDA’s overall fiscal first-quarter results are likely to be.
NVIDIA’s datacenter segment remains the company’s biggest growth engine. In the fourth quarter of fiscal 2026, datacenter revenues surged 75% year over year and 22% sequentially to reach $62.31 billion.
The momentum is expected to have continued in the upcoming quarter. The Zacks Consensus Estimate for datacenter revenues stands at $73.2 billion, pointing to nearly 87% year-over-year growth and a 17% sequential increase. The main reason behind this strength is the massive AI infrastructure spending by enterprises and hyperscale cloud providers, which rely heavily on NVIDIA’s GPUs to train and deploy AI models.
NVIDIA’s Hopper, Ampere and Blackwell chip platforms are currently powering some of the world’s most advanced AI workloads. These chips are widely used for training large language models and delivering real-time AI responses efficiently. Major technology companies like Microsoft, Amazon and Google continue expanding their use of NVIDIA chips across AI-focused products and cloud services, which should keep demand elevated.
AI Boom-Led Demand Drives NVIDIA’s Growth
The rise of generative AI has fundamentally reshaped the technology industry and created enormous demand for high-performance computing infrastructure. From chatbots and AI-powered search tools to healthcare research and automated content creation, companies across industries are rapidly integrating AI into everyday operations.
The long-term growth outlook for the generative AI market also remains extremely strong. Research from Fortune Business Insights estimates the market will reach $1,260.15 billion by 2034, expanding at a CAGR of 29.3%. This massive opportunity further strengthens NVIDIA’s position as a critical supplier of AI infrastructure worldwide.
Beyond technology companies, NVIDIA’s chips are increasingly being adopted across industries such as healthcare, automotive, manufacturing and cybersecurity. Its AI platforms help power applications, including digital assistants, recommendation engines, autonomous systems and language translation tools. As AI adoption becomes more widespread, NVIDIA’s importance within the broader technology ecosystem is only expected to grow further.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved upward by 48 cents over the past seven days to $58.94 per share, calling for an increase of 611% year over year. Micron Technology’s shares have climbed 634.6% in trailing 12 months.
The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings has been revised upward to $5.67 per share from $5.30 over the past 30 days. Lam Research shares have surged 239.7% over the past year.
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings is pegged at $11.45 per share, revised upward by a penny over the past 30 days and suggests a year-over-year jump of 67.9%. Broadcom shares have soared 84.4% over the past year.
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AI Datacenter Growth Likely to Power NVIDIA's Strong Q1 Revenues
Key Takeaways
NVIDIA Corporation (NVDA - Free Report) is set to report its first-quarter fiscal 2027 earnings on May 20, and expectations are high.
The company continues to dominate the artificial intelligence (AI) computing market and remains one of the biggest beneficiaries of the ongoing AI boom. NVIDIA’s powerful datacenter graphics processing units (GPUs) have become the backbone of modern AI infrastructure, supporting everything from cloud computing to generative AI applications. With enterprises and cloud providers continuing to increase AI spending aggressively, NVIDIA appears well-positioned to deliver another impressive quarter.
What to Expect From NVIDIA’s Q1 Results?
NVIDIA expects first-quarter fiscal 2027 revenues of roughly $78 billion (+/-2%), highlighting the massive acceleration in AI adoption worldwide. This represents a remarkable leap from prior years as more businesses allocate significant capital toward AI-driven growth initiatives. The Zacks Consensus Estimate currently stands at $78.75 billion, suggesting a staggering 78.7% jump from the year-ago figure and sequential growth of nearly 15.5%.
The consensus mark for first-quarter earnings is pegged at $1.77, implying a year-over-year surge of 118.5% and sequential growth of 9.3%. Earnings surpassed the Zacks Consensus Estimate three times in the trailing four quarters while missing on one occasion, the average surprise being 2.93%.
Click here to know how NVDA’s overall fiscal first-quarter results are likely to be.
NVIDIA Corporation Price and EPS Surprise
NVIDIA Corporation price-eps-surprise | NVIDIA Corporation Quote
Datacenter to Boost NVIDIA’s Q1 Revenues
NVIDIA’s datacenter segment remains the company’s biggest growth engine. In the fourth quarter of fiscal 2026, datacenter revenues surged 75% year over year and 22% sequentially to reach $62.31 billion.
The momentum is expected to have continued in the upcoming quarter. The Zacks Consensus Estimate for datacenter revenues stands at $73.2 billion, pointing to nearly 87% year-over-year growth and a 17% sequential increase. The main reason behind this strength is the massive AI infrastructure spending by enterprises and hyperscale cloud providers, which rely heavily on NVIDIA’s GPUs to train and deploy AI models.
NVIDIA’s Hopper, Ampere and Blackwell chip platforms are currently powering some of the world’s most advanced AI workloads. These chips are widely used for training large language models and delivering real-time AI responses efficiently. Major technology companies like Microsoft, Amazon and Google continue expanding their use of NVIDIA chips across AI-focused products and cloud services, which should keep demand elevated.
AI Boom-Led Demand Drives NVIDIA’s Growth
The rise of generative AI has fundamentally reshaped the technology industry and created enormous demand for high-performance computing infrastructure. From chatbots and AI-powered search tools to healthcare research and automated content creation, companies across industries are rapidly integrating AI into everyday operations.
The long-term growth outlook for the generative AI market also remains extremely strong. Research from Fortune Business Insights estimates the market will reach $1,260.15 billion by 2034, expanding at a CAGR of 29.3%. This massive opportunity further strengthens NVIDIA’s position as a critical supplier of AI infrastructure worldwide.
Beyond technology companies, NVIDIA’s chips are increasingly being adopted across industries such as healthcare, automotive, manufacturing and cybersecurity. Its AI platforms help power applications, including digital assistants, recommendation engines, autonomous systems and language translation tools. As AI adoption becomes more widespread, NVIDIA’s importance within the broader technology ecosystem is only expected to grow further.
NVDA’s Zacks Rank and Other Stocks to Consider
Currently, NVIDIA carries a Zacks Rank #2 (Buy).
Micron Technology, Inc. (MU - Free Report) , Lam Research Corporation (LRCX - Free Report) and Broadcom Inc. (APH - Free Report) are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Micron Technology sports a Zacks Rank #1 (Strong Buy), while Lam Research and Broadcom each carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved upward by 48 cents over the past seven days to $58.94 per share, calling for an increase of 611% year over year. Micron Technology’s shares have climbed 634.6% in trailing 12 months.
The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings has been revised upward to $5.67 per share from $5.30 over the past 30 days. Lam Research shares have surged 239.7% over the past year.
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings is pegged at $11.45 per share, revised upward by a penny over the past 30 days and suggests a year-over-year jump of 67.9%. Broadcom shares have soared 84.4% over the past year.