Nvidia Posts \ Revenue Quarter, Blackwell Demand Outstrips Supply by 3x

Nvidia reported fiscal first-quarter 2027 results that crushed all estimates: revenue of \.3 billion, up 78% year-over-year and \.1 billion above the highest Wall Street forecast. Data centre revenue of \.1 billion accounted for 92% of the total.

CEO Jensen Huang told analysts that Blackwell architecture GPU orders are running at three times production capacity, with the supply constraint expected to persist through at least Q3 2027 despite a 40% increase in TSMC wafer starts since January.

Gross margin expanded to 78.4%, above the 77% guided, reflecting favourable product mix as H200 and GB200 NVL72 configurations — the highest-margin SKUs — made up a larger share of shipments than expected.

Based on my analysis of the customer disclosures in the earnings call, the demand story has broadened from hyperscalers to enterprise. Huang cited 'over 400 enterprises' now in production deployment, up from 'dozens' a year ago — a shift that, if sustained, suggests AI infrastructure spending is becoming a recurring cost centre rather than a one-time capital build.

Free cash flow of \.8 billion funded \ billion in buybacks and a \.01 quarterly dividend increase. The stock rose 6.8% after hours.