NVIDIA's 85% Revenue Surge Silences People Who Said The AI Bubble Was Bursting

NVIDIA reported fiscal first-quarter earnings after the bell on Wednesday, May 20, delivering another quarter of strong growth as demand for artificial intelligence infrastructure continued to accelerate.

The chipmaker posted revenue of $81.62 billion for the quarter, up 85% from $44.06 billion a year earlier. The figure also came in ahead of Wall Street expectations of $78.86 billion. Adjusted earnings per share stood at $1.87, beating analyst estimates of $1.76 per share.

Strong Guidance For The Next Quarter

The company also issued upbeat guidance for the current quarter, forecasting revenue of $91 billion, plus or minus 2%. This surpasses the estimated revenue guidance of $86.84 billion, as per data compiled by LSEG.

Alongside the earnings report, NVIDIA announced an $80-billion share buyback programme and raised its quarterly cash dividend to 25 cents per share from 1 cent.

Despite the strong results and outlook, shares slipped 1.6% in extended trading, indicating investor concerns around increasing competition in the AI chip market.

Jensen Huang Highlights AI Growth

NVIDIA CEO Jensen Huang said agentic artificial intelligence has arrived and added that the buildout of AI factories is “accelerating at extraordinary speed”.

Huang also sought to reassure investors that the company could maintain its rapid growth trajectory through a broad customer base and upcoming products. According to Huang, NVIDIA expects its flagship AI chips to surpass $1 trillion in sales over time.

AI Infrastructure Spending Continues To Rise

Spending on AI infrastructure has continued to expand rapidly, with major US technology companies such as Alphabet, Amazon, and Microsoft expected to spend more than $700 billion on AI this year. This is up sharply from around $400 billion in 2025.

During the analyst call, Huang said NVIDIA expects to grow faster than hyperscale customers, pointing to strong momentum from AI-focused cloud firms within its data centre business.

Disclaimer: This content is for educational purposes only and does not constitute investment advice, personal recommendations, or a solicitation to buy or sell financial instruments. All investments involve risk, including potential loss of capital. Investors should consult professional financial advisors and consider their personal circumstances before making any investment decision.