APREX · EST. 2026
Record Results Fail to Boost Stock Price
Nvidia reported its first-quarter results for fiscal year 2027 on Thursday, and the figures were impressive in every respect. According to Nasdaq, the company delivered total revenue of $81.6 billion – a historic high for the company. This represents an 85 percent growth compared to the same quarter last year.
Nevertheless, the trading day ended with a decline in the stock. This illustrates a well-known phenomenon on Wall Street: when expectations are extremely high, even solid results can disappoint the market.
Even historic record figures are not enough when the market has already priced in the impossible.
Data Centers Dominate Completely
Behind the record figures lies a remarkable structural transformation. Nvidia's data center segment alone generated $75.2 billion in quarterly revenue, accounting for over 90 percent of the company's total revenue. This is a result of the company's aggressive focus on artificial intelligence and the enormous demand for H100 and B200 processors from technology companies and cloud providers globally.
This development represents a dramatic shift from Nvidia's previous business model. Just a few years ago, the company relied on gaming GPUs and a turbulent crypto market for growth. The crypto mining boom provided temporary tailwinds, but Ethereum's transition to proof-of-stake in September 2022 wiped out GPU mining almost overnight and sent gaming revenues down 51 percent in the third quarter of fiscal year 2023, according to the company's own reports.
From Crypto Boom to AI Dominance
Nvidia CEO Jensen Huang announced early on that blockchain would no longer be a significant part of the company's operations. Instead, the company focused on data centers and AI infrastructure – and it has paid off. The volatility that characterized the crypto segment has been replaced by more predictable large contracts with tech giants.
It should nevertheless be mentioned that Nvidia is still handling legal fallout from the crypto era. In May 2022, the company was fined $5.5 million by the U.S. financial regulator SEC for insufficient disclosure regarding crypto mining's contribution to gaming revenues in 2018. A class-action lawsuit with potential claims exceeding one billion dollars, related to similar allegations of inadequate reporting, was greenlit by a federal court in March 2026.
Why Did the Stock Fall?
The stock decline after strong results is not uncommon for Nvidia at this stage. Over recent quarters, the company has continuously raised the bar, leading market expectations to outpace even actual deliveries. In a risk-off environment – where investors are generally more cautious and seek safer assets – even good news can be met with "buy the rumor, sell the news" behavior.
It remains to be seen whether the stock drop represents a buying opportunity or if the market is beginning to doubt that the growth rate can be sustained. Production capacity limitations, geopolitical restrictions on the export of advanced chips, and a potential normalization of AI investments are among the factors analysts are closely monitoring going forward.
Sources: Nasdaq Markets, company's own quarterly reports
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