In the first quarter of fiscal 2027, NVIDIA (NVDA) posted non-GAAP earnings and revenue that beat expectations. It also announced a large stock buyback, along with hiking its dividend.
NVIDIA earned $1.87 non-GAAP per share. Adjustments to GAAP included a $15.936 billion loss from equity securities. Despite the adjustment, revenue of $81.62 billion is up by 85.2% Y/Y. Moreover, data center revenue of $75.2 billion is up 92% Y/Y.
The company increased its quarterly dividend from a penny per share to $0.25. The $80.0 billion stock buyback authorization will likely limit any downside to the share price. Expect NVDA stock to open down by around 1.0% today.
Ahead of the report, Intel (INTC) stock gained over 7% on Wednesday while AMD (AMD) added over 8%. The rise from the day before suggests that markets might take profits on those chip stocks. Still, the drop is no more than 1-2%.
Your Takeaway
Investors are not likely to question how customers finance their purchase of NVIDIA hardware. They might need to rely on analysts to assess how much of that funding is circular in nature. If customers have enough banks backing their loan, then their bookings do not have much risk of cancellation.
NVIDIA continues to look like a solid leader in the AI space. Amazon (AMZN) and Alphabet (GOOG) do not yet have an AI chip that will take much of their market share.
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