NVIDIA Corporation (NASDAQ:NVDA), featuring a net income margin of 55.60% and upside potential of 23.70%, secures a spot on our list of the best extremely profitable stocks to buy according to Wall Street analysts. The company reported net income of $120.07 billion for the latest fiscal year (FY26).
Building on that strong earnings run, NVIDIA Corporation (NASDAQ:NVDA) delivered another quarter of record results on May 20, 2026.
NVIDIA Corporation (NASDAQ:NVDA) reported first-quarter fiscal 2027 revenue of $81.6 billion, up 85% from a year ago and 20% from the prior quarter. Data Center led the surge with revenue of $75.2 billion, up 92% year-over-year and 21% sequentially. Within that segment, Data Center compute revenue reached a record $60.4 billion, while networking revenue hit $14.8 billion, a 199% jump from a year ago. Meanwhile, the Edge Computing segment contributed $6.4 billion, up 29% annually.
GAAP and non-GAAP gross margins came in at 74.9% and 75.0%, respectively, while free cash flow for the quarter was $48.55 billion. Non-GAAP diluted EPS came in at $1.87, up 140% year-over-year.
Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) guided second-quarter fiscal 2027 revenue of $91.0 billion, plus or minus 2%, with GAAP and non-GAAP gross margins expected at 74.9% and 75.0%, respectively. Importantly, the company noted it is not assuming any Data Center compute revenue from China in that outlook.
NVIDIA Corporation (NASDAQ:NVDA) also announced an additional $80.0 billion share repurchase authorization, approved by the board on May 18, 2026, with no expiration. The company raised its quarterly cash dividend from $0.01 per share to $0.25 per share, payable June 26, 2026, to shareholders of record as of June 4, 2026. During the quarter, NVIDIA returned a record $20 billion to shareholders through buybacks and dividends.
Jensen Huang, founder and CEO of NVIDIA Corporation (NASDAQ:NVDA), commented:
“The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed. Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced, from hyperscale data centers to the edge.”
Even so, the next phase of AI demand may be harder to dominate, as Reuters noted a day earlier that the market is shifting toward inference, where AI systems respond to queries and carry out tasks in real time. Alphabet has struck deals worth tens of billions of dollars for its custom tensor processing units, while Amazon’s Trainium processors are also starting to see increasing traction and market adoption. Furthermore, Intel and AMD are developing processors that are more optimized for smaller, cost-sensitive inference workloads.
In response to that growing competition, NVIDIA Corporation (NASDAQ:NVDA) introduced a new central processor and AI system built on Groq technology in March 2026. Reuters noted those chips are not included in Nvidia’s $1 trillion Blackwell and Rubin sales forecast by the end of 2027.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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