NVIDIA recently released its first quarter financial report for fiscal year 2027 (the statistical period ends on April 26, 2026).The total revenue in a single quarter reached US$81.6 billion, setting a new high in the company's history for a single quarter, with a year-on-year increase of 85% and a month-on-month increase of 20%. The performance was explosive.However, compared with the record-breaking financial data,The biggest highlight of this financial report is not the scale of revenue, but the complete reshuffle of business segments.
In its latest financial report, NVIDIA adopted a new reporting framework to more clearly reflect the company's current and future growth drivers.Specifically, NVIDIA divides its business into two parts: "data center" and "edge computing".
in,The data center segment is further divided into two major market segments: Hyperscale and AI Cloud, Industrial and Enterprise Market (ACIE).
Data center revenue hit a record of $75.2 billion in the first quarter, an increase of 21% from the previous quarter and an increase of 92% from the same period last year. It is the core of NVIDIA's business core.
Edge Computing: Edge computing revenue hit a record of $6.4 billion in the first quarter, up 10% from the previous quarter and 29% from the same period last year.
NVIDIA's outlook for the second quarter of fiscal 2027 is that revenue is expected to reach $91 billion, plus or minus 2%.
All along,The outside world is accustomed to dismantling NVIDIA's business structure and profitability through segments such as data centers, games, professional visualization, and automotive.
However, starting from fiscal year 2027, NVIDIA has completely abandoned the financial reporting structure divided by product categories that has been used for many years.Instead, revenue is split according to market deployment scenarios, with only two core business platforms remaining: data center and edge computing.
This means that core hardware revenue such as RTX consumer graphics cards, professional graphics cards, and Nintendo Switch console chips that the public is most concerned about will no longer be disclosed separately in the future, and will all be broken up and merged into the corresponding scene sections.
This change most intuitively confirms that AI and data center hardware are NVIDIA's absolute core businesses now. The graphics business, which was once its foundation, has now been completely reduced to a supporting role.
Under the new structure, the data center business, which is the absolute revenue pillar, has been split into two core sub-segments: hyperscale cloud services (Hyperscale) and AI cloud, industrial and enterprise markets (ACIE). Among them, the ultra-large-scale cloud service segment mainly covers leading large cloud vendors and Internet companies such as AWS, Google, Meta, and Microsoft.
The ACIE segment covers a wider scope, including enterprise AI factories, industrial intelligent deployment, national AI projects, supercomputing and other computing power needs that are not dominated by ultra-large-scale cloud vendors.
At the same time, the new edge computing segment packages all terminal businesses such as PCs, workstations, game consoles, robots, automobiles, and telecommunications base stations.
This financial report split is by no means as simple as changing the name. Behind it is NVIDIA’s accurate judgment on the future AI market structure. It is generally believed in the industry that most of the leading ultra-large-scale cloud vendors have the ability to develop their own chips and customize AI accelerators, and purchase hardware from multiple manufacturers. Their dependence on NVIDIA is gradually decreasing, and the growth space of this sector is therefore significantly restricted.
On the contrary, the ACIE market has a large number of small and medium-sized enterprises and various institutional participants. Such entities have almost no financial and technical strength to develop customized chips by themselves. They are highly dependent on NVIDIA's mature rack-mounted computing power platform, and the growth ceiling is almost invisible.
Founder Huang Renxun has also emphasized many times,As AI technology becomes universally popularized and covers thousands of enterprises, the ACIE segment may surpass the ultra-large-scale cloud service market in future revenue and become NVIDIA's core growth engine in the next decade.
Note: NVIDIA’s fiscal year ends on the last Sunday of January each year, using the calendar year system (January – December), but the naming of the fiscal year is based on the ending year. NVIDIA's fiscal year does not completely coincide with the natural year. For example, fiscal year 2027 starts on January 26, 2026 and ends on January 25, 2027.