Divergent market reactions highlight contrasting AI hardware spending trends despite record revenue for both firms.
NVIDIA reported Q1 FY27 revenue of $81.615 billion, up 85% year over year, driven by Blackwell GPU demand and $75.246 billion in Data Center sales. Non-GAAP EPS reached $1.87, with networking growth nearly doubling. CEO Jensen Huang called the AI infrastructure expansion unprecedented in scale and speed.
Micron’s Q2 FY26 revenue surged 196% to $23.86 billion, beating EPS estimates at $12.20. Cloud Memory revenue hit $7.75 billion with a 66% operating margin. CEO Sanjay Mehrotra emphasized memory’s strategic role for hyperscalers, contrasting with NVIDIA’s compute-focused narrative.
Since earnings, Micron shares jumped 128%, while NVIDIA fell 10%, reflecting investor concerns over hyperscaler capex softening as a shared risk for both stocks.