NVIDIA beats again, guides to $91bn for Q2 and authorises another $80bn of buybacks

Nvidia reported first-quarter revenue of $81.6bn, up 85% year-on-year and 20% from the prior quarter. Data-centre revenue reached $75.2bn, exceeding analyst expectations, and net income was $58.3bn, rising 37% sequentially and more than 200% year-on-year. The company guided second-quarter revenue to about $91bn, plus or minus 2%, compared with an analyst consensus near $86.84bn. The board increased the quarterly dividend from one cent to 25 cents per share and authorized an additional $80bn share buyback. This was the second $80bn buyback authorization in three quarters, bringing total authorized repurchases above $160bn. The guidance implies sequential growth around 12% and is viewed as conservative relative to large hyperscaler capex plans.

"Nvidia reported first-quarter revenue of $81.6bn on Wednesday, up 85% year-on-year and 20% from the prior quarter, and guided second-quarter revenue to about $91bn (plus or minus 2%) against an analyst consensus of $86.84bn. The board separately authorised an additional $80bn of share buybacks and lifted the quarterly dividend from one cent to 25 cents per share. The stock moved up on the print before settling roughly flat in extended trading."

"Data-centre revenue inside the quarter came in at $75.2bn, against the average analyst estimate of $72.8bn, as the dominant beat. Net income for the February-April period was $58.3bn, up 37% sequentially and more than 200% year-on-year, on the run rate Al Jazeera's coverage framed as 'record profit and revenue amid the AI chip boom'."

"The buyback authorisation is the second $80bn programme the board has approved inside three quarters. Combined, the company has authorised over $160bn of repurchases against a market capitalisation that has, on the May 20 close, traded above $4tn for most of the past quarter. The quarterly-dividend bump, from one cent to 25 cents, is mathematically immaterial against the buyback envelope but signals a balance-sheet posture that has moved decisively from growth-financing to capital-return on the discretionary-cash margin."

"The Q2 guide implies sequential growth of about 12% on the Q1 base. The Street's read is that the guide is conservative against the publicly visible hyperscaler-capex commitments for the second half of the year. AWS, Microsoft, Google and Meta have collectively guided to roughly $470bn of 2026 capex, the majority of which clears through Nvidia silicon. The $115bn-plus Meta capex line, the AWS GB200/GB300 NVL72 deployments and the Google-Blackstone $25bn TPU-cloud joint venture are"

Read at TNW | Nvidia