Nvidia hits record revenue as AI chip demand stays strong

Nvidia reported record revenue of US$81.6 billion for the quarter ended April 26, 2026, up 85% from a year earlier, driven mainly by data center sales as demand for AI chips stayed strong.

Data center revenue rose 92% to US$75.2 billion, while GAAP net income jumped 211% to US$58.3 billion and diluted earnings per share reached US$2.39.

The company forecast fiscal second-quarter revenue of about US$91 billion.

It said its outlook assumes no data center compute revenue from China.

Nvidia also approved an additional US$80 billion share buyback plan on May 18, 2026.

The company also raised its quarterly dividend to US$0.25 a share from US$0.01.

🔗 Source: Nvidia

🧠 Food for thought

Implications, context, and why it matters.

Nvidia’s results fit a far bigger AI infrastructure push

Nvidia’s sales sit within a wider AI infrastructure spending wave. The global AI data center market was worth US$98.2 billion in 2024 and could reach nearly US$2 trillion by 2034 1.
One estimate puts cumulative investment in AI compute, data centers, and power infrastructure at about US$7.6 trillion from 2026 to 2031 2.
Physical limits could slow that growth. A recent survey found 72% of US power-sector executives plus data center executives saw grid capacity and power supply as very or extremely challenging for data center expansion 3.

Why Nvidia leaves China out of guidance despite alleged workarounds

Nvidia’s guidance assumes zero data center compute revenue from China because US export controls restrict China’s access to advanced AI chips 4. A 2023 update focused more on performance density, which measures how much computing capability fits into a chip or system, to curb chip variants built to skirt the rules 5.
Even with those limits, some reports describe Chinese companies seeking controlled Graphics Processing Units (GPUs) through backchannels 6 4. GPUs are chips commonly used for AI workloads. Those routes allegedly include reexports through trading hubs such as Singapore 6 and sales in Shenzhen’s Huaqiangbei, a large electronics trading district in southern China 4.
Companies may also rent advanced chips through cloud services, a path described as a loophole in current controls 4. That gap can cloud estimates of China-linked demand even when Nvidia leaves it out of formal guidance.