On Wednesday, NVIDIA Corp. (NASDAQ:NVDA) reported first-quarter fiscal 2027 revenue of $82 billion, up 85% year over year and 20% sequentially, while adjusted EPS reached $1.87. Data center revenue surged 92% to $75 billion as hyperscalers and AI developers accelerated Blackwell deployments.



The company also generated a record $49 billion in free cash flow and approved an additional $80 billion share repurchase authorization. NVIDIA guided for second-quarter revenue of $91 billion, plus or minus 2%.



<h2>Executives See Multi-Trillion-Dollar AI Infrastructure Opportunity</h2>



CEO Jensen Huang said AI infrastructure demand has &#34;gone parabolic&#34; as enterprises and cloud providers scale agentic AI workloads. He added that NVIDIA expects to grow faster than hyperscaler capital expenditures by expanding across sovereign AI, robotics, industrial AI, and enterprise deployments.



CFO Colette Kress said Blackwell delivered the fastest product ramp in NVIDIA's history, with strong deployments across Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN) AWS, Alphabet Inc. (NASDAQ:GOOGL) Google, Anthropic, xAI, and CoreWeave Inc. (NASDAQ:CRWV).



Kress estimated global AI infrastructure spending could eventually reach $3 trillion to $4 trillion annually. At the same time, Huang said NVIDIA's upcoming Vera Rubin platform could open a roughly $200 billion CPU market tied to AI inference and orchestration workloads.



NVIDIA continues to anchor the broader AI infrastructure rally, with analysts and portfolio managers pointing to accelerating hyperscaler spending, expanding AI compute demand, and long-term infrastructure buildouts, even as some investors raise concerns around valuation and margin sustainability.



<h2>Analysts See NVIDIA As Central To AI Infrastructure Growth</h2>



Futurum analyst Daniel Newman told CNBC on Thursday that NVIDIA continues to hold a dominant position in AI infrastructure despite rising competition and valuation concerns.



He compared NVIDIA's current role to Apple during the previous technology cycle, describing the company as both a high-growth and relatively safe AI investment.



Newman said hyperscalers, including Amazon and Meta Platforms Inc (NASDAQ:META), continue to prioritize compute capacity to drive revenue growth, reinforcing NVIDIA's leadership in the AI ecosystem.



He added that Futurum expects AI compute capacity to reach 190 gigawatts by 2030 alongside nearly $3 trillion in AI infrastructure spending.



Similarly, Pence Capital Management CIO Dryden Pence told CNBC on Thursday that NVIDIA is foundational AI infrastructure, comparing the company's role to the transcontinental railroad during America's industrial expansion.



Pence said Microsoft, Amazon, and Meta continue placing massive orders for AI infrastructure and projected roughly $950 billion in AI-related capital expenditures by 2027.



<h2>Experts Highlight AI Compute Expansion</h2>



T. Rowe Price portfolio manager Tony Wang told CNBC on Thursday that the industry is entering a new wave of &#34;agentic AI,&#34; in which AI agents increasingly interact with the internet rather than humans, driving a major increase in compute demand.



Deepwater's Gene Munster told CNBC that NVIDIA's revenue acceleration was &#34;remarkable,&#34; noting that adjusted year-over-year revenue growth exceeded 100% even after accounting for China-related comparisons.



Munster also said NVIDIA's July-quarter guidance still points to roughly 95% growth, signaling continued strength in AI demand.



Munster described NVIDIA as &#34;the brain of AI,&#34; arguing that hyperscalers continue aggressively expanding AI infrastructure before broader commercial AI applications fully scale.



<h2>Some Investors Warn About Valuation And Margins</h2>



GMO U.S. Quality ETF portfolio manager Tom Hancock cautioned CNBC on Wednesday that semiconductor valuations may have moved ahead of the pace of AI adoption, as investor concentration in AI stocks increases.



Hancock also questioned whether NVIDIA can sustain gross margins near 75% over the long term as competition rises and semiconductor pricing cycles normalize. He warned that parts of the semiconductor industry increasingly rely on pricing strength rather than pure volume growth.



<h2>NVIDIA Earnings Seen As Important For Broader AI Trade</h2>



Capital Area Planning Group's Malcolm Ethridge told CNBC on Thursday that NVIDIA's earnings have become increasingly important for validating the broader AI and semiconductor rally rather than simply driving NVIDIA shares higher.



Ethridge noted that semiconductor indexes such as the SOXX and PHLX Semiconductor Indexes have outperformed NVIDIA shares year-to-date, even as investors continue to rely on NVIDIA earnings to support the overall AI investment narrative.



He also downplayed concerns around China-related revenue, saying investors no longer view China chip sales as a major catalyst for NVIDIA's long-term growth outlook.



Ethridge said analysts and investors now largely view Nvidia's China opportunity as a &#34;nothingburger,&#34; with potential sales of lower-end chips expected to contribute only about 4% of total revenue and increasingly seen as immaterial to the broader investment story.



NVDA Price Action: Nvidia shares were up 0.42% at $224.40 during premarket trading on Thursday, according to Benzinga Pro data.



Photo by Below the Sky via Shutterstock

NVDA

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NVIDIA Corp. reported Q1 fiscal 2027 revenue of $82 billion, up 85% year-over-year, driven by strong AI infrastructure demand. Analysts view NVIDIA as a key player in AI growth, despite concerns over valuation and margins. The company anticipates $91 billion in Q2 revenue and has approved an $80 billion share repurchase. Some investors see its China business as insignificant, contributing only 4% to total revenue. NVIDIA shares rose 0.42% to $224.40 in premarket trading.

- NVIDIA Corp. reported first-quarter fiscal 2027 revenue of $82 billion, an 85% year-over-year increase, with data center revenue surging 92% to $75 billion.  
- CEO Jensen Huang highlighted a multi-trillion-dollar AI infrastructure opportunity, expecting significant growth in AI-related deployments and anticipating $3 trillion to $4 trillion in global AI spending annually.  
- Despite concerns about valuation and margins, analysts view NVIDIA as a key player in the AI infrastructure sector, projecting continued demand from major tech companies.

Nvidia's China Business Is Now A 'Nothingburger': Analyst