Nvidia reported revenue and earnings per share above expectations and announced a $60 billion share buyback. The stock dipped after hours due to extremely high expectations and options-implied volatility rather than operational failure. Data centre sales, driven by Blackwell chips, rose 17% sequentially and 56% year-over-year, reflecting intense AI demand. H20 chips were not shipped to China because of export restrictions, and easing those rules could add $2–$5 billion next quarter. The results underscore long-term AI infrastructure growth while highlighting geopolitical and regulatory risks that can pressure even dominant firms.
Nvidia just posted another monster quarter - revenue and earnings per share exceeded expectations, while the company also announced a jaw-dropping $60 billion share buyback. That's the kind of signal markets usually love as it says, 'We're confident. We're here to stay'. But the stock still dipped after hours - so, what caused this? The mild stock dip wasn't about failure; rather, it was about expectations. With options traders pricing in a 6% swing, anything short of perfect was going to invite second-guessing. That's what happens when you're a $2 trillion AI titan.
Yes, the core business is still booming. Demand for AI chips remains intense. Nvidia's data centre segment, powered by its new Blackwell chips, rose 17% from last quarter and 56% year-over-year. That's huge. It shows Nvidia is still the beating heart of global AI infrastructure. But there are clouds. Nvidia didn't ship any of its H20 chips to China this quarter. Export restrictions are biting. Management said if those rules ease, it could add $2 to $5 billion in sales next quarter.
So, what does all this mean for investors? First, the big picture is still intact. Nvidia's results support the idea that AI infrastructure is the next long-term growth engine. It's good news for chipmakers, cloud providers, and even more speculative AI plays. This is a rising tide moment. But there's also a caution flag. China's situation is a reminder that no matter how strong a company is, macro forces still matter - regulation, trade tensions, and global politics are now part of the equation.
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