Nvidia saw a 199% jump in data center networking revenue for the last quarter, with a total of $14.8 billion for the segment.

The figure came in Nvidia's earnings for the first quarter (Q1) of its fiscal 2027, which saw the chip giant pull in a record $81.6 billion in quarterly revenue, an 85% year-over-year increase and 20% sequential growth.

The firm also posted record data center revenue of $75.2 billion, up 92% from Q1 2026. Nvidia is forecasting second-quarter revenue of around $91 billion, while not "assuming any data center compute revenue from China" in its projections.

It was reported in March that Nvidia halted production of H200 graphic processing units (GPUs) intended for use in the Chinese market despite getting the green light from the U.S. government to continue production. A low sales forecast saw Nvidia instead reallocate manufacturing capacity at Taiwan Semiconductor Manufacturing Company (TSMC) foundries for its Vera Rubin chips.

Nvidia's networking success came after a quarter that saw investments in the likes of optical vendor Corning andl a deal with Google Cloud that will see the upcoming Vera Rubin platform power Google’s new bare metal virtual machine (VM) instances for AI inference.

The quarter also saw Nvidia's Vera central processing unit (CPU) enter full production, as evidence with a whistle-stop delivery tour that included recipient Elon Musk; the release of AI-storage solution BlueField-4 STX; and the Nvidia Groq 3 language processing unit (LPU).

Nvidia CEO Jensen Huang even boldly proclaimed the vendor to be "the largest networking company in the world,” dethroning stalwart Cisco.

High on its own supply

The wins came alongside a general tightening of supply chain issues in the industry, as affecting CPUs, memory hardware, electro-absorption modulated lasers, and even helium. But with investments in the likes of photonic firm Coherent, which also flourished during the quarter, as well as Lumentum, Ayar Labs, and Marvell, Nvidia has sewn up its supply chain.

Huang detailed the company’s supply chain evaluation during its recent GTC event, where this title heard Nvidia was “constantly just looking across the entire life cycle of the technology and manufacturing across the supply chain” in preparation for growth.

Nvidia's latest earnings saw Huang build on his earlier statement by claiming Nvidia was "front footed in securing sufficient supply to support our customers' growth."

"In Q1, we increased total supply inclusive of inventory purchase commitments on prepaids to $145 billion," Huang added.

New reporting structure

Nvidia's earnings also introduced a shift to a new reporting structure designed to better align with its current and future growth drivers, dividing its business into data center and edge computing segments.

The edge computing segment will cover data processing platforms supporting both agentic and physical AI, including consumer gear, AI radio access network (AI-RAN) base stations, robotics, and automotive systems.

"In the future, every single base station, every single radio network would become an AI-powered radio network," Huang said.

This may be proven by Nvidia investee Nokia, which showed the fruits of its labors with its chip partner in the last quarter, showcasing successful AI-RAN field tests with Nvidia at this year's Mobile World Congress (MWC) event.

Within the data center segment, Nvidia will further break out two subcategories: Hyperscale and AI Clouds, Industrial, and Enterprise (ACIE). The Hyperscale category will capture revenue from public cloud providers, while ACIE will encompass purpose-built AI data centers and “AI factory” deployments.

As explored in SDxCentral’s Sovereignty Supplement, Nvidia's factory wares are increasingly powering sovereign AI ventures from countries like Indonesia, Brazil, and Canada.

Huang added Nvidia was "growing share in inference very, very quickly" thanks to the growth in frontier AI model companies.