Amazon, Google, Microsoft, and Meta invest in proprietary silicon as Nvidia’s Q1 data center sales hit $75.25 billion.
Nvidia reported Q1 FY27 revenue of $81.61 billion, up 85.2% year over year, driven by $75.25 billion in data center sales. However, half of those sales come from hyperscalers like Amazon, Google, Microsoft, and Meta, which are developing custom AI chips to cut costs and reduce reliance on Nvidia’s GPUs.
The company’s networking revenue surged 199% to $14.8 billion, reinforcing its moat beyond GPUs into interconnect technologies like InfiniBand and NVLink. Despite this, hyperscalers’ push for proprietary solutions signals a long-term threat to Nvidia’s dominance in AI compute.
Nvidia’s market cap stands at $4.75 trillion, with shares trading between a 52-week low of $158.18 and high of $236.26. Management guided Q2 revenue to $91.0 billion, maintaining a 75% non-GAAP gross margin.