Nvidia reports $39.3b quarterly revenue as AI shift redefines growth

Next-generation chipmaker Nvidia has reported revenue of $39.3 billion for the three months to the end of January, topping estimates and leading to the company increasing first-quarter revenue guidance for FY2026 to $43b (plus or minus 2%).

Revenue from the tech giant’s Data Centre division was a record $35.6 billion, up 16% from the previous quarter and 93% from a year ago.

This follows news that the division will serve as a key technology partner for the Trump administration’s $500b Stargate project to expand US artificial intelligence (AI) infrastructure.

Changing profit mix

Revenue from the company’s Automotive and Robotics division soared to $570 million, fuelled by confirmation that Toyota will build its next-generation vehicles on the Nvidia Drive AGX Orin platform.

Hyundai Motor Group has also recently announced its plan to use cutting-edge robotics on the Nvidia Omniverse platform to create safer, smarter vehicles and supercharge its manufacturing capabilities.

The Professional Visualisation division generated $511m, driven by the continued ramp-up of Ada RTX graphics processing unit workstations for use cases such as generative AI-powered design, simulation and engineering.

However the company reported a 22% drop from the previous quarter in gaming revenue to $2.5b, reflecting a distinct shift in priorities since the rise of AI.

Blackwell demand

Nvidia chief executive officer Jensen Huang said demand for new Blackwell chips had buoyed the numbers by “achieving billions of dollars in sales in the first quarter.”

These models, which are fuelling the development of next-generation “reasoning” AI models such as OpenAI’s O1 and O3-mini, take longer to answer a query and expend more computational power to provide a more thoughtful response.

“Demand for Blackwell is amazing as reasoning AI adds another scaling law—increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter,” Mr Huang said.

He said AI was advancing “at light speed” as agentic AI and physical AI set the stage for the next wave of technology to revolutionise the world’s largest industries.