NVIDIA Corporation

NVIDIA reported total revenue of $82 billion, up 85% year over year and 20% sequentially. Data center revenue was $75 billion, up 92% year over year and 21% sequentially; data center computing revenue was $60 billion, up 77% year over year, and networking revenue was $15 billion, nearly triple year over year. Gross margin was 74.9% GAAP and 75% non-GAAP, and free cash flow was a record $49 billion. For Q2, NVIDIA guided to revenue of $91 billion, plus or minus 2%; GAAP and non-GAAP gross margin of 74.9% and 75%, plus or minus 50 basis points; and operating expenses of about $8.5 billion GAAP and $8.3 billion non-GAAP. Management also said full-year gross margin should stay in the mid-70s, full-year OpEx should grow in the upper 40s year over year, and full-year tax rate should be 16%-18%.

Jensen Huang framed the quarter as evidence that “demand has gone parabolic” because agentic AI has arrived and tokens are becoming economically valuable. He argued NVIDIA is the platform at the center of AI infrastructure, citing growing adoption with frontier model makers, hyperscalers, AI-native clouds, sovereign customers, and physical AI/robotics. His tone was highly confident and expansive, emphasizing that NVIDIA’s full-stack model, ecosystem, and annual cadence position it for multiple large growth vectors, including Vera as a new CPU opportunity.

Colette Kress highlighted an exceptionally strong quarter with revenue, operating income, and free cash flow all at records. She noted GAAP gross margin of 74.9% and non-GAAP gross margin of 75%, both largely flat sequentially as Blackwell systems made up most shipments, and said operating expenses were up 12% sequentially due mainly to higher compensation and compute/infrastructure costs. She also said days sales outstanding were 45 days, expects a return to the mid-50s in Q2, and reiterated capital allocation priorities: R&D, strategic investments, a higher dividend, and an $80 billion share repurchase authorization.

Analysts focused on the new segmentation, hyperscaler CapEx trends, inference share, the role of Vera CPUs, and the pace of Vera Rubin ramping. Management said the new framework is meant to better reflect three distinct markets, that NVIDIA should grow faster than hyperscaler CapEx because it serves both hyperscale and a large second category of AI-native, enterprise, industrial, and sovereign customers, and that share in inference is rising quickly. On Vera, management said the $20 billion figure referred to standalone CPU revenue, that Vera is a new agentic CPU opportunity, and that Vera Rubin will begin shipments in Q3 with demand already in place, though the exact ramp timing is still early.