A $91B revenue forecast and a new Vera chip couldn't stop shares from sliding after hours.
NVIDIA beat Wall Street again. But this time, the market shrugged. The chipmaker posted stronger-than-expected results and issued an outlook that crushed estimates, yet shares dropped 1.6% in after-hours trading as investors weighed growing competition against another quarter of record numbers.
KEY DETAILS
NVIDIA posted Q1 revenue of $81.62B, ahead of the $78.86B estimate. Data center revenue hit $75.2B vs. the $72.8B expected. Adjusted EPS came in at $1.87, beating the $1.76 forecast.
For Q2, the company guided to $91B in revenue (±2%), well above Wall Street's $86.84B estimate. NVIDIA also announced an $80B share buyback and raised its quarterly dividend from $0.01 to $0.25 per share.
CEO Jensen Huang introduced the "Vera" central processor, targeting a $200B addressable market. He expects $20B in Vera revenue by fiscal year-end, a figure separate from the company's existing $1 trillion forecast for its Blackwell and Rubin AI chips through 2027.
Supply commitments rose to $119B in Q1, up from $95.2B. Huang acknowledged that Vera Rubin will likely remain supply-constrained throughout its lifecycle.
MARKET REACTION
NVDA fell ~1.6% post-earnings. AI-adjacent equities saw modest pressure. No significant forex or crypto moves were tied directly to the report.
WHY IT MATTERS FOR TRADERS
Beating estimates is no longer enough for Nvidia to move its stock higher. The focus is shifting to the durability of AI spending into 2027–2028, growing competition from AMD, Intel, Google, and Amazon's custom silicon, and whether the Vera chip opens a meaningful new revenue stream.
WHAT TO WATCH
Supply chain updates on Vera Rubin. Any signal from hyperscalers on capex slowdowns. And whether custom chip adoption by Nvidia's biggest customers starts eating into its core GPU dominance.
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