Nvidia Earnings Beat Expectations as CEO Jensen Huang Defends Long-Term AI Growth Outlook
Nvidia CEO Jensen Huang sought to reassure investors that the company can maintain its rapid expansion in artificial intelligence, highlighting a growing customer base and new products that could help push revenue beyond the company’s projected $1 trillion opportunity in flagship AI chips.
The comments came as Nvidia delivered another quarter of stronger-than-expected financial results, reinforcing its dominant position in the AI semiconductor market.
Nvidia Revenue and Earnings Top Wall Street Estimates
Nvidia reported first-quarter revenue of $81.62 billion, surpassing analyst expectations of $78.86 billion.
Additional highlights included:
- Data center revenue: $75.2 billion vs expectations of $72.8 billion
- Adjusted earnings per share (EPS): $1.87 vs expected $1.76
The results reflect continued strong demand for AI infrastructure as major technology firms accelerate investment in artificial intelligence capabilities.
Nvidia Forecast Signals Continued Growth Momentum
For the second quarter, Nvidia projected revenue of approximately $91 billion, plus or minus 2%.
The forecast exceeded Wall Street estimates of $86.84 billion, suggesting management remains confident in sustained AI spending despite concerns around valuation and competition.
The company also announced:
- An $80 billion share repurchase program
- An increase in the quarterly dividend from $0.01 to $0.25 per share
These moves signal a greater emphasis on returning capital to shareholders.
Nvidia Shares Remain Under Pressure Despite Strong Results
Despite posting impressive numbers, Nvidia shares showed a relatively muted reaction after earnings.
Investors remain cautious due to concerns that major customers are increasingly developing custom AI chips, potentially creating long-term competition for Nvidia’s dominance.
However, Huang argued Nvidia expects to outgrow its largest hyperscale clients by benefiting from rising demand among AI cloud providers and enterprise-focused customers, which expanded faster during the quarter.
Nvidia’s Vera Chip Platform Opens New Growth Opportunities
During the earnings call, Huang emphasized Nvidia’s upcoming Vera processors, describing them as an opportunity targeting a $200 billion addressable market.
The company expects approximately $20 billion in Vera-related revenue before the end of the fiscal year. Importantly, this forecast sits outside Nvidia’s previously announced $1 trillion opportunity for Blackwell and Rubin AI chips between 2025 and 2027.
Huang stated that Vera could become Nvidia’s second-largest revenue contributor, while also warning that supply constraints may persist throughout the product lifecycle.
Nvidia Expands Cloud Agreements as AI Demand Accelerates
Nvidia disclosed $30 billion in cloud computing agreements, rising from $27 billion in the prior quarter.
The company said these agreements help support continued research and development investments and reinforce long-term AI demand.
The growth further highlights Nvidia’s increasing role across cloud infrastructure and enterprise AI adoption.
Wall Street Analysts Remain Largely Bullish on Nvidia’s Outlook
Several major investment firms reacted positively to Nvidia’s earnings report.
Goldman Sachs
Goldman Sachs said Nvidia could outperform broader markets due to higher hyperscaler capital expenditure and stronger shareholder return policies.
Morgan Stanley
Morgan Stanley argued Nvidia’s position as the most important AI chip supplier remains difficult to challenge, emphasizing confidence in the upcoming Vera Rubin platform.
Bank of America
Analysts highlighted Nvidia’s diverse growth drivers, noting strong momentum across hyperscale computing and enterprise AI services.
Bernstein
Bernstein described demand for Nvidia’s Blackwell chips as exceptionally strong, while maintaining confidence in the company’s long-term AI roadmap.
Raymond James
The firm pointed to Vera processors as a new growth pillar, estimating significant expansion opportunities in AI-related CPU markets.
Citi
Citi welcomed Nvidia’s improved transparency around data center revenue, viewing the reporting changes positively.
Wolfe Research
Wolfe noted investors are increasingly focused on Nvidia’s outlook beyond 2026 rather than near-term earnings strength.
Stifel
Stifel raised its target price, maintaining an optimistic but measured outlook.
Macquarie
Macquarie highlighted rising demand for both GPU and CPU products, alongside growing opportunities from agentic AI systems.
Evercore ISI
Evercore emphasized Nvidia’s expanded buyback and dividend plans, suggesting significantly higher shareholder returns ahead.
Overall, analyst reactions suggest Wall Street remains broadly optimistic about Nvidia’s long-term AI leadership, despite increasing competition and elevated expectations.
