NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) told investors to expect $91.0 billion in revenue for the second quarter of fiscal 2027, plus or minus 2%. That figure is guidance, not a reported result, and it excludes any Data Center compute revenue from China.
Now, this figure is significantly higher than the $81.61 billion the company just delivered in Q1 FY27, which itself was up 85.2% year over year and topped consensus expectations. For a company already generating roughly a quarter-trillion dollars of trailing revenue, the guide implies sequential acceleration on a base that most industries could not reach in a decade.
What It Means
Break the Q1 result apart and the story sharpens. Data Center revenue landed at $75.25 billion, up 92% year over year. Inside that, Data Center Networking pulled in $14.8 billion, up 199%, as InfiniBand, NVLink, and Spectrum-X demand tripled. Non-GAAP gross margin printed at 75.0%, and net income reached $58.32 billion, up 210.63%. Perhaps most importantly, free cash flow (what the market is growing increasingly concerned with) came in at $48.55 billion. The company has now beaten consensus EPS four quarters in a row, most recently with $1.87 versus a $1.77 estimate.
This $91 billion guide carries additional weight because it is stated to exclude Chinese Data Center compute revenue. NVIDIA shipped no H20 units to China in the quarter, versus $4.6 billion in the year-ago period. Whatever comes back from that market is upside optionality on top of the guide, not baked in. Supporting that outlook is a stated $119.0 billion in total supply-related commitments and $30.0 billion in multi-year cloud service commitments.
Market Reaction
NVDA stock closed at $194.83 on July 2, 2026. Over the past week, shares are down 0.46%, and over the past month down 12.46%, moving from $222.57 on June 2 to the current level. Year to date, the stock is up 4.59%, and one-year performance stands at up 24.06%. On the day the Q1 FY27 report hit, May 20, 2026, shares were at $221.54.
Bull Case
The bull case for Nvidia starts with acceleration on a base that was already very large. The AI giant grew its revenue in Q1 by 85.2%, and the Q2 guide points higher in absolute dollars. Networking growth of 199% shows the buildout extending beyond GPUs into the interconnect fabric that ties them together. These numbers were driven by an absolutely incredible gross margin of 75% with Q2 guidance holding at 75% plus or minus 50 basis points, given strong pricing power as Blackwell ramps.
Capital return has changed investors’ perspective on NVDA stock, in my view. The company’s board approved a new $80.0 billion share repurchase authorization in May 2026 on top of $38.5 billion remaining under the prior program, with roughly $20.0 billion was returned in Q1 alone. Nvidia’s quarterly dividend was raised from $0.01 to $0.25 per share, declared May 18, 2026 and paid June 26, 2026. Analyst consensus target price sits at $301.62, with 10 Strong Buy and 48 Buy ratings against 2 Hold and 1 Sell. Forward P/E is 23, which is 30 on a trailing basis.
CEO Jensen Huang framed the setup on the earnings call: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” He added that “Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries.” Partnerships announced or expanded in the quarter include Google Cloud on Vera Rubin A5X instances, Marvell on NVLink Fusion, Coherent, Corning, and Lumentum on optics, plus automotive tie-ins with Hyundai, Kia, Uber, BYD, Geely, and Nissan, and telecom collaboration with T-Mobile and Nokia on AI-RAN and 6G.
Risks aren’t to be ignored, however. Nvidia’s Q2 guide already excludes China Data Center compute, a substantial Q2 cash tax increase is expected, consumer PC demand is softer, and third-party manufacturing reliance concentrates supply chain risk. None of those items alter the anchor, that the company is guiding to $91.0 billion in a single quarter, with China stripped out.
Bottom Line
For long-term holders, the $91 billion guide is the number that keeps the AI infrastructure thesis intact on hard math rather than narrative. Data Center growth of 92%, Networking growth of 199%, gross margin at 75.0%, and a new $80.0 billion buyback authorization together describe a business compounding at scale while returning cash.
The next reported result will test whether that guide holds. Until then, the number on the page is the story.
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