{"id":3616,"date":"2026-05-20T21:00:53","date_gmt":"2026-05-20T21:00:53","guid":{"rendered":"https:\/\/digitalmarkettrends.com\/index.php\/2026\/05\/20\/nvidia-delivers-record-revenue-but-stock-falls-on-ai-growth-concerns\/"},"modified":"2026-05-20T21:00:53","modified_gmt":"2026-05-20T21:00:53","slug":"nvidia-delivers-record-revenue-but-stock-falls-on-ai-growth-concerns","status":"publish","type":"post","link":"https:\/\/digitalmarkettrends.com\/index.php\/2026\/05\/20\/nvidia-delivers-record-revenue-but-stock-falls-on-ai-growth-concerns\/","title":{"rendered":"Nvidia delivers record revenue but stock falls on AI growth concerns"},"content":{"rendered":"
<\/div>\n

Shares of Nvidia (NVDA) fell in extended trading on Wednesday after the artificial intelligence chipmaker issued a quarterly revenue forecast that, while above Wall Street expectations, failed to fully satisfy investors accustomed to the company significantly outperforming estimates.<\/p>\n

Nvidia reported record first-quarter fiscal 2027 revenue of $81.6 billion, up 85% year over year and 20% sequentially. <\/p>\n

The company posted GAAP diluted earnings per share of $2.39 and non-GAAP diluted earnings per share of $1.87.<\/p>\n

The company\u2019s data center business continued to drive results, with revenue in the segment reaching a record $75.2 billion, up 92% from a year earlier. <\/p>\n

Nvidia also announced an additional $80 billion share repurchase authorization and raised its quarterly dividend to $0.25 per share.<\/p>\n

Despite the strong quarterly performance, Nvidia shares dropped 0.27% after the release. <\/p>\n

Investors appeared focused on the company\u2019s second-quarter outlook and intensifying competition across the AI semiconductor industry.<\/p>\n

Data center demand fuels record quarter<\/h2>\n

Nvidia forecast second-quarter revenue of $91 billion, plus or minus 2%, above Wall Street estimates of $87 billion.\u00a0<\/p>\n

However, some analyst projections had reached as high as $96 billion, tempering investor enthusiasm.<\/p>\n

The company said it was not assuming any data center compute revenue from China in its second-quarter outlook.<\/p>\n

Chief Executive Officer Jensen Huang attributed the company\u2019s growth to accelerating AI infrastructure spending and strong demand for next-generation AI systems.<\/p>\n

Nvidia said record data center revenue was driven by the rapid buildout of AI factories and demand tied to agentic artificial intelligence applications.<\/p>\n

The company also highlighted improving profitability, citing rising sales of its Blackwell AI chips as a contributor to stronger margins compared with the prior quarter.<\/p>\n

Spending on AI infrastructure remains elevated across the technology industry. <\/p>\n

Major hyperscalers, including Alphabet, Amazon, and Microsoft, are expected to spend more than $700 billion on AI this year, according to the report.\u00a0<\/p>\n

Nvidia expands AI ecosystem<\/h2>\n

Nvidia continued broadening its AI portfolio during the quarter, unveiling the Vera Rubin platform, which includes the Vera CPU and BlueField-4 STX products designed for agentic AI and AI factory deployments.<\/p>\n

The company also entered production with Dynamo 1.0, software intended to accelerate generative and agentic AI inference workloads on Blackwell GPUs.<\/p>\n

Nvidia expanded partnerships across cloud computing, optics, automotive, and semiconductor ecosystems. <\/p>\n

Collaborations announced during the quarter included agreements involving Google Cloud, Marvell Technology, Coherent, Corning, Lumentum, Hyundai, Kia, and Uber.<\/p>\n

The company also reported continued momentum in its Edge Computing business, where revenue rose 29% year over year to $6.4 billion.<\/p>\n

Competition pressures AI dominance<\/h2>\n

Although Nvidia remains the dominant supplier of AI accelerators used to train artificial intelligence models, competition in the industry continues to intensify.<\/p>\n

Advanced Micro Devices, Intel, Broadcom, and Alphabet\u2019s Google are all developing competing AI chips and inference technologies.<\/p>\n

Much of the competition is focused on AI inferencing, the process where AI systems respond to user requests, which many companies view as a larger long-term market opportunity than AI training.<\/p>\n

Nvidia has responded by broadening its product lineup beyond accelerators to include networking, software, CPUs, AI models, and full computing systems.<\/p>\n

The company has also continued investing heavily in expanding supply capacity, arguing that customer demand remains stronger than available production.<\/p>\n

The post Nvidia delivers record revenue but stock falls on AI growth concerns<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Nvidia (NVDA) fell in extended trading on Wednesday after the artificial intelligence chipmaker issued a quarterly revenue forecast that, while above Wall Street expectations, failed to fully satisfy investors accustomed to the company significantly outperforming estimates. Nvidia reported record first-quarter fiscal 2027 revenue of $81.6 billion, up 85% year over year and 20% […]<\/p>\n","protected":false},"author":1,"featured_media":3617,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts\/3616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/comments?post=3616"}],"version-history":[{"count":0,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts\/3616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/media\/3617"}],"wp:attachment":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/media?parent=3616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/categories?post=3616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/tags?post=3616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}