Nvidia (NVDA) stock fell slightly in extended trading after the artificial intelligence chip giant’s first quarter earnings and revenue surpassed Wall Street analysts’ expectations.
In addition to the earnings release, Nvidia’s CFO Colette Kress shared commentary that revealed four key developments in its business, beyond the company’s first quarter earnings-per-share beat.
Hyperscalers make up half of Nvidia’s biggest revenue driver
First, Nvidia said hyperscaler customers like Amazon (AMZN), Alphabet (GOOG, GOOGL), and Microsoft (MSFT) still account for half of Nvidia’s data center revenue.
Hyperscaler revenue increased 12% in the first quarter to $38 billion, Kress said on the earnings call. The other half of Nvidia’s data center revenue came from “AI clouds, industrial, enterprise, and sovereign customers,” she added.
Nvidia didn’t report any China revenue
Second, Nvidia did not ship any Hopper products to China during the quarter, compared with $4.6 billion in China revenue in the first quarter of fiscal year 2026. Although the US approved the export of these tightly controlled chips, officials in Beijing have discouraged Chinese businesses from buying them as they seek to boost China’s domestic chip industry.
“The US government has approved licenses for H200 to be shipped to China-based customers,” Kress said. “We have yet to generate any revenue, and we are uncertain whether any imports will be allowed into the country as a result. Consistent with last quarter, we are not including any China data center compute revenue in our outlook.”
The company is changing how it reports earnings
Third, Nvidia is changing its reporting framework, and the company will now have two market platforms: Data Center and Edge Computing. The Data Center segment will include business activity from Big Tech companies and purpose-built data centers. Edge Computing consists of the business’s data processing devices for agentic and physical AI, including PCs, game consoles, workstations, AI-RAN base stations, robotics, and automotive.
Nvidia said that the change in the reporting framework was aimed at helping investors better understand the company’s growth drivers. The company previously reported results across Data Center, Gaming and AI PC, Professional Visualization, and Automotive and Robotics.
