Nvidia has announced record quarterly profit and revenue, driven by explosive demand for its advanced AI chips. The US tech giant reported on Wednesday that its profit for the February-April period surged to $58.3 billion, marking a 37 percent increase from the previous quarter and over 200 percent year-on-year. Revenue also saw a significant jump, reaching $81.6 billion, up 20 percent from the prior quarter and 85 percent compared to the same period in 2025. Nvidia projects revenue for the current quarter to hit $91 billion, surpassing most analysts’ estimates.
The primary growth engine was Nvidia’s data-center business, which saw its quarterly revenue soar by 92 percent year-on-year to $75.2 billion. The Santa Clara, California-based chip giant’s hardware unit contributed $6.4 billion in revenue, a 29 percent increase from the previous year.
In a move to reward shareholders, the world’s most valuable company revealed plans to buy back an additional $80 billion in shares and raise its quarterly cash dividend from $0.01 to $0.25 per share. Nvidia CEO Jensen Huang lauded the “extraordinary” results as clear evidence of AI’s growing utility. “Demand has gone parabolic,” Huang stated during a conference call, attributing this to the arrival of “Agentic AI,” referring to semi-autonomous AI models. He emphasized that “AI can now do productive and valuable work.”
Despite once again exceeding analysts’ expectations, Nvidia’s latest results received a subdued market response. Shares in Nvidia dipped nearly 1.3 percent in after-hours trading, reflecting the exceptionally high expectations placed on a company whose rapid growth since 2022 has propelled its market capitalization beyond $5 trillion.
Nvidia’s remarkable ascent and the lofty valuations of other tech giants like Microsoft and Amazon have sparked discussions about whether AI is overhyped and potentially creating a massive market bubble. Jay Goldberg, a senior analyst for semiconductors and electronics at Seaport Research, commented to Al Jazeera, “Expectations are very high, and when a company like Nvidia has been doing as well as it has for so long, it takes a lot for people to get excited.” He added, “That’s just kind of the nature of Wall Street.” Goldberg also noted that while many tech stocks have performed strongly this year, much of it is driven by press releases, with tech firms yet to demonstrate a “broad-based consumer case” for AI.
William Rhind, CEO and founder of New York-based investment firm GraniteShares, suggested the muted reaction indicates that expectations have “caught up to fundamentals.” He told Al Jazeera, “Nvidia is no longer beating a high bar – it is the bar.” Nevertheless, Rhind believes the bullish outlook for Nvidia remains strong, citing the dividend hike and share buyback scheme as signs of a company with “more cash than it can possibly redeploy into the business.” He explained, “When the marginal use of capital starts shifting toward buybacks and dividends, you’re watching a hypergrowth story begin to mature in real time. That’s not bearish – it’s a different kind of bullish.”
John Belton, a portfolio manager at Gabelli Funds, stated that Nvidia’s latest results should not “dramatically shift the story one way or the other.” He described them as “another solid earnings,” mirroring the “strong numbers” of previous quarters, “albeit without any new earth-shattering developments.”
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