Nvidia earnings reveal its fastest-growing business might not be chips

Nvidia just posted $81.6 billion in quarterly revenue, an 85% jump from a year ago. But buried inside those numbers is a story that goes well beyond selling GPUs to hyperscalers. The company’s Q1 fiscal 2027 results, reported on May 20, revealed that networking revenue within its Data Center segment hit $14.8 billion, up 199% year-over-year. That triple-digit growth rate outpaces even the Data Center segment’s own 92% expansion. Meanwhile, Nvidia’s investment portfolio generated roughly $15.9 billion in non-operating income, creating a widening gap between operating income and net income. The numbers behind the narrative shift Data Center revenue reached a record $75.2 billion, accounting for the overwhelming majority of Nvidia’s total haul. Networking revenue nearly tripled to $14.8 billion, a pace that positions Nvidia as what it now calls the world’s largest networking provider. Operating income came in at approximately $53.5 billion. Net income reached $58.3 billion, a $4.8 billion gap that requires some unpacking. Nvidia the investor That $4.8 billion difference between operating and net income traces back to Nvidia’s growing side hustle as a venture investor. The company book...