Nvidia (NVDA) has unveiled its financial results for the first quarter of fiscal 2027, with key metrics handily topping both market consensus and the company’s internal forecasts. The tech giant posted total revenue of $81.6 billion, representing an 85% year-over-year increase. Net income jumped 211% year over year to $58.3 billion, while adjusted earnings per share came in at $1.87, beating Wall Street estimates.
Driving the robust performance was its data center division, which generated $75.2 billion in revenue, a 92% year-over-year rise. The segment now accounts for roughly 92% of Nvidia’s total top line, cementing its role as the core growth engine for the AI chip leader.
While investors have largely fixated on the stellar quarterly earnings, another underrated factor is set to fuel Nvidia’s stock performance: its expanding portfolio of equity investments. Moving beyond its core hardware business, the company has built tight ties with partners across the AI industrial chain through equity holdings and assembled a diversified asset portfolio, whose value is gradually coming to light.
Nvidia targets major players across the AI sector for its investments, with each deal serving clear strategic and financial goals. The firm has deepened its partnership with AI data center operator Iren, planning to deploy its chips across Iren’s data center facilities with a total capacity of 5 gigawatts. In addition, Nvidia secured a five-year call option to purchase up to 30 million shares of Iren at an exercise price of $70 apiece, a potential investment worth $2.1 billion in total. Iren’s stock currently trades at around $57. It has surged nearly 600% over the past twelve months and climbed more than 30% so far this year. Should the build-out of AI infrastructure continue apace, Iren’s share price is likely to surpass the strike price in the next five years, delivering substantial returns to Nvidia.
Back in late 2025, Nvidia poured $5 billion into Intel at an entry price of $23.28 per share. Intel’s stock has since climbed above $110, notching a year-to-date gain of over 200%. Returns from this investment have outpaced Nvidia’s own revenue growth and stock performance over the same period. According to regulatory filings, Intel stands as Nvidia’s largest equity holding, followed by CoreWeave, Synopsys and Coherent. Earlier this March, Nvidia also invested $2 billion in AI data center provider Nebius, forming a comprehensive investment network covering chips and data center operations.
These equity moves are closely aligned with Nvidia’s core chip business, as most investee companies are long-term buyers of its products. Boasting profound industry insights, Nvidia is better positioned than most external investors to assess the operations and prospects of chain players and negotiate favorable terms for equity deals.
Although equity investments make up only a small part of Nvidia’s balance sheet, this segment has long been undervalued by the market. Gains generated from these holdings help strengthen the company’s financial position. Alongside its investment push, Nvidia has ramped up returns to shareholders. It has obtained approval for a new unlimited share repurchase program worth $80 billion alongside the latest earnings release. In fiscal 2026, the company returned more than $41.1 billion to shareholders through a combination of stock buybacks and dividends.
Nvidia has evolved into a company powered by both core operations and capital deployment. Solid earnings have laid a sound fundamental foundation, while its growing equity portfolio opens up new room for growth. As the AI industry keeps expanding, these equity assets will continue to unlock value and provide sustained support for Nvidia’s stock in the long run.
