Nvidia's Revenue Growth Accelerates Amid Skepticism Over Stock Price

Nvidia's revenue growth is accelerating, not decelerating as some market analysts believe. Over the past 12 months, the company's revenue has grown by a staggering 71% to $253 billion, with net income more than doubling to about $160 billion.

The stock trades at around 21 times forward earnings, which would be ordinary for a mature business but is unusually high for a company of Nvidia's size and growth rate. However, the market's skepticism may be misplaced as the company's revenue continues to grow rapidly.

In the fiscal first quarter of 2027, revenue grew 85% year over year to $81.6 billion, more than double the $46.7 billion generated in the same period a year earlier. Management's guidance calls for revenue of about $91 billion in the fiscal second quarter, nearly doubling again.

The data center business is driving this growth, with revenue rising 92% year over year to $75.2 billion in the fiscal first quarter. Profitability has also kept pace, with gross margin near 75% and non-GAAP earnings per share up 140% year over year to $1.87.