Nvidia posts $81.6 billion in Q1 revenue, up 85% year-over-year, beating guidance as stock declines

Nvidia reported Q1 revenue of $81.6 billion, growing 85% year over year, compared to management guidance of $78 billion plus or minus 2%. The stock dipped more than 4% for the week following the results.

Revenue grew 20% quarter over quarter in Q1. The company's growth rate is re-accelerating compared to prior quarters, with Nvidia achieving quarter-over-quarter growth in a single quarter that other major tech companies like Microsoft, Apple, and Alphabet typically reach on a year-over-year basis.

Despite faster growth than peers, Nvidia trades at a similar forward price-to-earnings ratio to Microsoft, Apple, and Alphabet, suggesting the market may be undervaluing the company relative to its performance and the ongoing AI infrastructure build-out.