On May 20, 2026, NVIDIA (NASDAQ: NVDA) delivered a record-breaking earnings report despite facing multiple headwinds. For the first quarter of fiscal year 2027, ending April 26, 2026, the company posted revenue of $81.615 billion, up 85% year-over-year and 20% quarter-over-quarter, marking its third consecutive quarter of accelerating growth. Non-GAAP diluted earnings per share reached $1.87, beating the Zacks consensus estimate of $1.77 by about 5.65%.
However, these record results did not translate into a corresponding rise in the stock price. As of June 23, 2026, NVDA closed at $200, down 4.15% for the day. Since the earnings release, the stock has continued to decline, hitting its lowest point of the year. This divergence—accelerating fundamentals alongside a stock price correction—is central to understanding NVIDIA’s current investment logic.
Absolute Dominance in Data Centers: $75.2 Billion AI Revenue Engine
NVIDIA’s core growth driver this quarter remained its data center business. This segment generated $75.2 billion in revenue, up 92% year-over-year and accounting for 92% of the company’s total revenue. Computing chips (including Blackwell GPUs) contributed $60.4 billion, up 77% year-over-year, while networking equipment added $14.8 billion, with a remarkable 199% year-over-year increase. This surge reflects not only the booming demand for GPUs but also a parallel rise in networking needs within data center infrastructure for AI.
Looking at the customer breakdown, about $38 billion came from hyperscale clients, and roughly $37 billion from AI cloud, industrial, and enterprise clients. Sovereign AI—a segment that barely existed two years ago—grew over 80% year-over-year, with infrastructure deployments spanning nearly 40 countries. NVIDIA explicitly excluded China’s data center computing revenue from its guidance, meaning this growth was achieved without access to an estimated $50 billion market.
NVIDIA is repositioning itself from a "GPU supplier" to an "AI infrastructure platform." The company introduced a new reporting framework, dividing its business into two major market platforms: Data Center and Edge Computing. Within Data Center, it further segments into Hyperscale and ACIE (AI Cloud, Industrial, and Enterprise) submarkets. CEO Jensen Huang described the current AI infrastructure buildout as "the largest infrastructure expansion in human history" during the earnings call.
From a broader financial perspective, NVIDIA achieved $215.9 billion in revenue for fiscal year 2026, net income of $120.07 billion, and free cash flow of $96.58 billion. Its current forward P/E is about 23x, and the PEG ratio is just 0.63. For a company compounding earnings at this pace, such a valuation is not expensive from a historical standpoint.
Dividend Raised 25-Fold: Signaling Strong Cash Return Capability
In its Q1 FY27 earnings report, NVIDIA announced a dramatic increase in its quarterly cash dividend from $0.01 per share to $0.25 per share—a 25-fold (2,400%) jump. Additionally, the board approved a new $80 billion share repurchase authorization. In just the first quarter of fiscal year 2027, NVIDIA returned about $20 billion to shareholders through buybacks and dividends.
Such a scale of dividend adjustment is extremely rare in the US stock market. While the indicative dividend yield after the increase remains below 0.5%, it’s a significant leap from the previous $0.01 quarterly payout, which barely provided a 0.02% yield. This move marks NVIDIA’s transition from a "zero dividend" phase to "meaningful cash returns." CFO Colette Kress stated at GTC 2026 that the company plans to allocate at least 50% of free cash flow to capital returns, and this action is a substantial fulfillment of that commitment.
Valuation Correction vs. Fundamentals: What Is the Market Pricing In?
As of June 24, 2026, NVDA closed at $200.04. According to MarketBeat data as of June 2026, among 38 analysts covering the stock, the lowest target price is $250—about 24% above the current price—the average target is $311, and the highest is $500. No formal bearish views exist among sell-side researchers.
Yet, the market’s pricing logic is shifting. US AI data center capital expenditures have exceeded 1.2% of GDP, surpassing telecom spending during the peak of the dot-com bubble. NVIDIA’s approximately $4.9 trillion market cap creates significant concentration risk in major indices. The market is compressing valuation multiples—not as a rejection of fundamentals, but as a correction to "perfect pricing."
Gate Stock Trading: 24/7 Access to NVIDIA Investment
For investors looking to participate in NVIDIA’s long-term growth but constrained by traditional trading hours, Gate offers a differentiated solution. On June 23, 2026, Gate officially upgraded its stock trading platform to support 24/7 trading. In addition to pre-market, regular, and after-hours sessions, the platform now includes overnight and weekend trading, fully covering US, Hong Kong, and Korean markets. The initial launch features 215 tradable assets, including 195 popular US stocks such as Apple, NVIDIA, Tesla, and Microsoft; 17 Hong Kong stocks like Tencent Holdings, Xiaomi, and Meituan; and 3 Korean stocks including Samsung Electronics, SK Hynix, and Hyundai Motor. This means investors can react instantly to earnings releases, Fed decisions, or macroeconomic data at any time—without waiting for the next trading day to open.
Gate’s market coverage now includes over 10,000 US stocks and ETFs, more than 1,500 Hong Kong stocks, and 1,000 popular Korean stocks. In tokenized stocks, Gate has launched nearly 100 trading pairs, covering over 70 tokenized equities, including NVIDIA (NVDAX / NVDAUSDT), Tesla, Apple, Google, Microsoft, Meta, Amazon, and other tech giants.
Gate has built a dual-track model of "real stock trading + tokenized stocks." For real stock trading, Gate partners with compliant brokers holding US Broker-Dealer licenses and clearing qualifications, allowing users to trade underlying assets from Nasdaq, NYSE, and other major US markets directly with USDT. All tradable assets are compliant stocks and ETFs—not derivative mappings—with transparent holdings. Users enjoy full shareholder rights, including dividend distributions. For tokenized stocks, each token in the xStocks section is fully backed 1:1 by actual shares held by regulated issuer Backed Finance.
On fees, Gate’s stock trading is fully integrated into its VIP tier system. Users need only $2,000 in holdings to access a minimum exclusive stock trading fee of 0.023%. The platform supports fractional trading down to 0.01 shares, further lowering the entry threshold for high-priced tech stocks. Gate uses USDT as the unified settlement currency, so users don’t need to convert to USD, HKD, or KRW. Simply transfer USDT from a spot or unified account to the stock account to start trading.
Conclusion
NVIDIA is undergoing a paradigm shift from chip supplier to AI infrastructure monopoly. The Q1 FY27 revenue of $81.6 billion, $75.2 billion in data center revenue, and a 25-fold dividend increase together paint the picture of a company at the heart of "the largest infrastructure expansion in human history." With the stock price around $200 and a forward P/E of 23x, for a company growing annual revenue by 85% and data center revenue by 92%, the risk-reward profile is worth close examination. For investors seeking to participate in this long-term trend, Gate’s 24/7 stock trading and fees as low as 0.023% offer new infrastructure options for flexible investment beyond traditional trading hours.
FAQ
1. What are the key figures from NVIDIA’s Q1 FY27 earnings report?
For the first quarter of fiscal year 2027 (ending April 26, 2026), NVIDIA reported $81.6 billion in revenue, up 85% year-over-year and 20% quarter-over-quarter. Non-GAAP EPS was $1.87, beating market expectations by about 5.65%. Data center revenue reached $75.2 billion, up 92% year-over-year and accounting for 92% of total revenue.
2. How did NVIDIA’s AI revenue perform in 2026?
NVIDIA’s total revenue for fiscal year 2026 was $215.9 billion. Q1 FY27 data center revenue was $75.2 billion, up 92% year-over-year. Sovereign AI revenue grew over 80% year-over-year, spanning nearly 40 countries. Blackwell chips accounted for most shipments in the quarter, with non-GAAP gross margin maintained at 75%.
3. By how much did NVIDIA raise its dividend?
NVIDIA increased its quarterly cash dividend from $0.01 per share to $0.25 per share—a 25-fold (2,400%) jump. The board also authorized an additional $80 billion in share repurchases. The new dividend will be paid on June 26, 2026, to shareholders of record as of June 4.
4. How can you trade NVIDIA stock on Gate?
Gate offers two methods: real stock trading (directly trading Nasdaq and NYSE underlying assets through compliant brokers) and tokenized stocks (1:1 pegged in the xStocks section, such as NVDAX). Supports 24/7 trading, minimum investment of 0.01 shares, and VIP user fees as low as 0.023%.
5. What is NVIDIA’s current stock price and valuation?
As of June 24, 2026, NVDA closed at $200.04. The forward P/E is about 23x, and the PEG ratio is 0.63. Analysts’ average target price is $311, with the lowest at $250. The current price has pulled back significantly from the year’s high, but the company’s fundamental growth remains strong.
