The Split Pricing Era of AI Factories: NVIDIA's Evolution from Chipmaker to Infrastructure Monopoly and Its Earnings Discrepancy

On May 20, 2026, NVIDIA (NASDAQ: NVDA) delivered a record-breaking earnings report amid multiple headwinds. As of April 26, 2026, in the first quarter of fiscal year 2027, the company achieved revenue of $81.61B, up 85% year-over-year and 20% quarter-over-quarter, marking the third consecutive quarter of accelerating growth. Non-GAAP diluted earnings per share reached $1.87, exceeding the consensus estimate of $1.77 by approximately 5.65%.

However, the record performance did not lead to a corresponding rise in the stock price. As of June 23, 2026, NVDA closed at $200, down 4.15% on that day. Since the earnings release, the stock has continued to decline and touched its low for the year. This divergence—fundamentals accelerating while the stock price pulls back—is the key insight into understanding NVIDIA’s current investment logic.

Absolute Dominance in Data Centers: $75.2 Billion AI Revenue Engine

NVIDIA’s core growth driver this quarter remains its data center business. This segment generated $75.2 billion in revenue for the quarter, up 92% year-over-year, accounting for 92% of the company’s total revenue. Of this, compute chips (including Blackwell GPUs) contributed $60.4 billion, up 77%; network equipment contributed $14.8 billion, a 199% increase, indicating that the AI infrastructure boom is not only boosting GPU procurement but also driving increased network connectivity needs within data centers.

Looking at customer structure, approximately $38 billion comes from hyperscale clients, and about $37 billion from AI cloud, industrial, and enterprise customers. The “Sovereign AI”—a segment that was nearly nonexistent two years ago—has achieved over 80% YoY growth, with infrastructure deployments covering nearly 40 countries. NVIDIA explicitly excludes data center compute revenue from China in its guidance, implying that this growth occurred without accounting for an estimated $50 billion market in China.

NVIDIA is positioning itself from a “GPU supplier” to an “AI infrastructure platform.” The company has introduced a new reporting framework dividing its business into two major market platforms—Data Center and Edge Computing. Within data centers, it further segments into Hyperscale and ACIE (AI Cloud, Industrial, and Enterprise). CEO Jensen Huang described the current expansion of AI infrastructure as “the largest infrastructure expansion in human history.”

From a broader financial perspective, NVIDIA achieved full-year revenue of $215.9 billion in FY2026, with a net profit of $120.07 billion and free cash flow of $96.58 billion. The current forward P/E ratio is approximately 23x, with a PEG ratio of just 0.63. For a company that continues to grow earnings at this pace, such valuation levels are not considered expensive historically.

25-Fold Dividend Increase: Signal of Cash Return Capability

In Q1 FY27, NVIDIA announced a significant increase in its quarterly cash dividend from $0.01 per share to $0.25 per share, a 25-fold (2,400%) increase. The board also approved an additional $80 billion share repurchase authorization. In just the first quarter of FY2027, NVIDIA returned about $20 billion to shareholders through stock buybacks and dividends.

This dividend adjustment is rare in the U.S. stock market. Although the indicated dividend yield remains below 0.5%, compared to the negligible 0.02% yield from the previous $0.01 quarterly dividend, this increase marks NVIDIA’s transition from a “zero-dividend” phase to a “meaningful cash return” phase. NVIDIA CFO Colette Kress stated at GTC 2026 that the company plans to allocate at least 50% of free cash flow to capital returns, and this move is a substantial fulfillment of that commitment.

Valuation Correction and Divergence from Fundamentals: What Is the Market Pricing?

As of June 24, 2026, NVDA closed at $200.04. According to MarketBeat data as of June 2026, among 38 analysts covering the stock, the lowest target price is $250—about 24% above the current price—while the average target is $311, and the highest is $500. There are no official bearish views from sell-side analysts.

However, the market’s valuation logic is changing. U.S. AI data center capital expenditures now exceed 1.2% of GDP, surpassing the peak telecom spending levels during the dot-com bubble. NVIDIA’s approximately $4.9 trillion market cap represents a highly concentrated risk within major indices. The market is compressing valuation multiples—not a denial of fundamentals, but a correction toward “perfect pricing.”

Gate Stock Trading: A 24/7 New Channel for NVIDIA Investment

For investors wishing to participate in NVIDIA’s long-term growth but limited by traditional trading hours, Gate offers a differentiated solution. On June 23, 2026, Gate officially launched 24/7 stock trading. Building on pre-market, regular, and after-hours trading, the platform added overnight and weekend trading sessions, covering the U.S., Hong Kong, and Korean markets. The initial offering includes 215 trading assets, such as Apple, NVIDIA, Tesla, Microsoft, and others—195 popular U.S. stocks, 17 Hong Kong stocks including Tencent, Xiaomi, Meituan, and 3 Korean stocks like Samsung Electronics, SK Hynix, and Hyundai. This allows investors to react instantly to earnings reports, Federal Reserve decisions, or macroeconomic data at any time, without waiting for the next trading day.

Market coverage now supports over 10,000 U.S. stocks and ETFs, more than 1,500 Hong Kong stocks, and 1,000 popular Korean stocks. In terms of stock tokens, Gate has launched nearly 100 trading pairs, covering over 70 tokenized stocks, including NVIDIA (NVDAX / NVDAUSDT), Tesla, Apple, Google, Microsoft, Meta, Amazon, and other tech giants.

Gate’s “real stock trading + tokenized stocks” dual-track model allows users to trade actual stocks via licensed broker-dealers holding U.S. licenses and clearing rights, directly using USDT to buy underlying assets listed on NASDAQ, NYSE, and other major U.S. markets. These are compliant stocks and ETFs, not derivatives, with transparent holdings and full shareholder rights, including dividends. The tokenized stocks are fully backed 1:1 by actual stocks held by regulated issuers like Backed Finance.

In fee structure, Gate’s stock trading is integrated into VIP tiers, with minimum holdings of $2,000 to enjoy a low fee of 0.023%. The platform supports fractional trading as low as 0.01 shares, lowering the barrier to investing in high-priced tech stocks. USDT is used as the settlement currency, so users only need to transfer USDT from spot or unified accounts to stock accounts to participate directly.

Conclusion

NVIDIA is undergoing a paradigm shift from a chip supplier to an AI infrastructure monopoly. The $81.6 billion revenue in Q1 FY27, $75.2 billion data center revenue, and 25-fold dividend increase paint a picture of a company at the heart of “the largest infrastructure expansion in human history.” The current stock price near $200 and a forward P/E of 23x, for a company with 85% annual revenue growth and 92% data center growth, presents a compelling risk-reward profile. For investors seeking to participate in this long-term trend, Gate’s 24/7 stock trading service and low trading fees as low as 0.023% provide a new infrastructure option to overcome traditional trading time zone limitations and enable more flexible investment allocation.

FAQ

1. What are the core data points of NVIDIA’s Q1 FY27 earnings report?

In the first quarter of FY2027 (ending April 26, 2026), NVIDIA achieved revenue of $81.6 billion, up 85% YoY and 20% QoQ; non-GAAP EPS of $1.87, exceeding market expectations by about 5.65%; data center revenue of $75.2 billion, up 92% YoY, representing 92% of total revenue.

2. How did NVIDIA’s AI revenue perform in 2026?

NVIDIA’s full-year FY2026 revenue was $215.9 billion. Q1 FY27 data center revenue was $75.2 billion, up 92% YoY. Sovereign AI revenue grew over 80% YoY, covering nearly 40 countries. Blackwell chips accounted for most shipments that quarter, with non-GAAP gross margin maintained at 75%.

3. How much did NVIDIA’s dividend increase?

NVIDIA increased its quarterly cash dividend from $0.01 to $0.25 per share, a 25-fold (2,400%) increase. It also added an $80 billion share repurchase authorization. The new dividend will be paid on June 26, 2026, to shareholders of record as of June 4.

4. How does Gate trade NVIDIA stocks?

Gate offers two methods: real stock trading (via licensed broker-dealers directly trading underlying NASDAQ and NYSE assets) and tokenized stocks (e.g., NVDAX) with 1:1 backing. It supports 24/7 trading, with minimums as low as 0.01 shares and fees as low as 0.023% for VIP users.

5. What is NVIDIA’s current stock price and valuation?

As of June 24, 2026, NVDA closed at $200.04. The forward P/E ratio is approximately 23x, with a PEG ratio of 0.63. The average analyst target price is $311, with a minimum of $250. The stock has pulled back from its high earlier in the year, but the company’s fundamentals remain strong.