NVIDIA posts $81.62B revenue

Nvidia reported $81.62 billion in revenue for its fiscal first quarter on May 20, beating analysts’ estimates of $78.86 billion and extending the surge in spending on artificial-intelligence infrastructure. Adjusted earnings were $1.87 a share, above estimates of $1.76, and the company said data-center revenue nearly doubled from a year earlier. (cnbc.com) Nvidia also announced an $80 billion share repurchase program and raised its quarterly cash dividend to 25 cents a share from 1 cent. Shares slipped in extended trading after the results, even as the company forecast second-quarter revenue of about $91 billion, plus or minus 2%. ### Why did investors focus on the buyback and dividend? (y94.com) The $80 billion buyback was one of the headline announcements in Nvidia’s release, but the immediate stock reaction suggested some investors wanted larger direct cash returns. Reuters reported the shares ticked down 0.2% in extended trading after the company paired the repurchase with a dividend increase to 25 cents a share. Jacob Bourne, an analyst at eMarketer quoted by Reuters, said Nvidia’s repeated earnings beats were already expected by investors. Bourne said the question for shareholders was whether the company could show the AI buildout would remain durable into 2027 and 2028 as competition in inference chips increases. (cnbc.com) ### How big was the quarter in dollar terms? Revenue of $81.62 billion marked an 85% jump from $44.01 billion a year earlier, according to Yahoo Finance’s summary of the results. The New York Times reported quarterly profit of $58.3 billion, up 211% from a year earlier, underscoring how much of Nvidia’s growth is flowing through to the bottom line. (y94.com) CNBC reported that data-center revenue nearly doubled, reinforcing that the company’s core AI server business remained the main engine of growth. Nvidia’s chips are used across the largest cloud and model developers, making its earnings a closely watched measure of AI infrastructure demand. (y94.com) ### What did Jensen Huang say about demand? Chief Executive Jensen Huang used the earnings call to argue that demand is still accelerating. CNBC reported Huang said “agentic artificial intelligence has arrived” and that AI factory buildouts were “accelerating at extraordinary speed.” Huang also said on the call that demand had “gone parabolic,” according to CNBC’s live coverage. (finance.yahoo.com) He linked that demand to Nvidia’s position supplying chips and systems used by hyperscalers, public-cloud providers and enterprise customers building AI capacity. ### Where is the pressure coming from? (cnbc.com) Alphabet, Amazon and Microsoft are expected to spend more than $700 billion on AI this year, up from around $400 billion in 2025, Reuters reported, showing why Nvidia’s sales base has continued to expand. Those companies remain major buyers of Nvidia processors even as they invest in custom chips of their own. (cnbc.com) Reuters reported that Nvidia faces rising competition in inference chips from large cloud companies as well as from Advanced Micro Devices and Intel. Colette Kress, Nvidia’s finance chief, said on the earnings call that the market for CPUs is about $200 billion and that the company has visibility into nearly $20 billion in CPU revenue this fiscal year. (cnbc.com) ### What comes next in the company’s outlook? Nvidia said second-quarter revenue is expected to be about $91 billion, plus or minus 2%, compared with analysts’ estimates of $86.84 billion compiled by LSEG. The company posted the first-quarter materials and webcast for investors on its investor relations site on May 20. (y94.com) The next formal updates will come through Nvidia’s SEC filings, quarterly results page and public conference calls, which the company identified as its channels for material investor disclosures. (investor.nvidia.com) (y94.com)