Vera

Alpha

Strong

Record

<h3 id="quick-summary">Quick Summary</h3>
<ul>
 <li>Nvidia surpassed Q1 earnings expectations with adjusted EPS of $1.87 versus $1.77 consensus, delivering $0.10 beat alongside revenue of $81.6B against $79.19B forecast.</li>
 <li>Company’s Q2 revenue projection of $91B significantly exceeded analyst expectations of $87.36B.</li>
 <li>Management unveiled an $80B stock buyback initiative and increased quarterly dividend 2,400% from $0.01 to $0.25 per share.</li>
 <li>Jensen Huang introduced the “Vera” CPU, positioning it to capture a $200B addressable market with $20B revenue target by fiscal year close.</li>
 <li>Shares declined approximately 1.6% in after-hours sessions as market participants assessed intensifying competitive pressures from proprietary chip development.</li>
</ul>
Trading at $223.47 when Wednesday’s regular session concluded, Nvidia’s shares retreated roughly 1.6% during extended hours despite delivering impressive financial results that exceeded expectations.
<a href="https://knockoutstocks.com/stock/NVDA" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/NVDA/embed" alt="NVDA Stock Card"> NVIDIA Corporation, NVDA </a>
The semiconductor giant reported fiscal first-quarter revenue of $81.62B, surpassing the analyst consensus of $78.86B. Adjusted earnings per share reached $1.87, comfortably beating the Street’s $1.77 projection by $0.10.
The company’s data center segment generated $75.2B during the quarter, exceeding the $72.8B analyst forecast. This division continues to serve as Nvidia’s primary growth driver.
<blockquote class="twitter-tweet">
 Nvidia Earnings Smash Expectations <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f680.png" alt="🚀">
 Nvidia <a href="https://twitter.com/search?q=%24NVDA&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$NVDA</a> delivered another huge AI-driven quarter, with revenue, EPS, data center sales and guidance all coming in ahead of Wall Street forecasts <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/26a1.png" alt="⚡"><a href="https://t.co/BjjN9d80SK" rel="noopener noreferrer nofollow">pic.twitter.com/BjjN9d80SK</a>
 — Wall St Alpha (@WallStAlphaPro) <a href="https://twitter.com/WallStAlphaPro/status/2057353955282161887?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 21, 2026</a>
</blockquote>
Looking ahead to Q2, management issued guidance of $91B — with a 2% variance in either direction — substantially surpassing Wall Street’s $87.36B expectation. The upper bound of this range suggests potential revenue approaching $92.8B.
Additionally, the company authorized an $80B share repurchase plan and dramatically increased its quarterly dividend from $0.01 to $0.25 per share, representing a remarkable 2,400% jump.
<h3 id="vera-processor-targets-untapped-market-opportunity">Vera Processor Targets Untapped Market Opportunity</h3>
During the earnings conference call, CEO Jensen Huang highlighted Nvidia’s newly announced “Vera” central processing unit, describing it as an entry point into a $200B addressable market. Management anticipates <a href="https://coincentral.com/nvidia-nvda-stock-jim-cramer-warns-of-post-earnings-relentless-hammering/" rel="noopener noreferrer nofollow">NVIDIA</a> will generate $20B in Vera-related revenue before the current fiscal year concludes.
Importantly, this $20B projection represents incremental opportunity beyond Nvidia’s previously disclosed $1 trillion revenue estimate spanning Blackwell and Rubin AI processors through 2027. Huang indicated expectations for Vera to emerge as the company’s second-largest revenue stream outside that trillion-dollar forecast.
<blockquote>
 “All of our customers are quite excited about Vera,” Huang stated during the investor call.
 However, he acknowledged a potential limitation: “My sense is that we’ll be supply-constrained through the entire life of Vera Rubin,” referencing the integrated platform scheduled to debut later this year.
</blockquote>
To address potential supply chain challenges proactively, Nvidia’s supply commitments expanded to $119B in Q1, representing an increase from the previous quarter’s $95.2B.
<h3 id="mounting-competitive-landscape">Mounting Competitive Landscape</h3>
The post-market decline reflects mounting investor concerns regarding Nvidia’s largest customers developing proprietary chip solutions.
<a href="https://coincentral.com/alphabet-googl-stock-google-and-openai-sign-major-ai-deals-with-singapore/" rel="noopener noreferrer nofollow">Alphabet</a>, Amazon, and Microsoft are projected to deploy more than $700B toward AI infrastructure investments in 2025, representing a substantial increase from approximately $400B in 2024. A meaningful portion of this capital is being allocated to custom semiconductor development aimed at decreasing dependency on Nvidia’s products.
Meanwhile, Intel and AMD continue expanding their presence in the inference chip sector, an increasingly critical market as artificial intelligence workloads transition from model training to deployment and execution.
Nvidia has responded strategically to these competitive dynamics. This past March, the company introduced a new central processor and AI system incorporating technology from Groq, a startup specializing in inference-optimized chip architecture.
Huang highlighted an emerging sub-category within the data center segment — AI-specialized cloud providers — where revenue approximately equaled that from major hyperscale customers while demonstrating superior sequential growth. “We should be growing faster than hyperscale capex,” Huang emphasized.
According to InvestingPro data, Nvidia has received 34 upward EPS revisions against only one downward adjustment over the past 90 days, with the platform rating the company’s financial condition as “excellent performance.”
Shares have appreciated 17.73% over the preceding three-month period and climbed 69.55% year-over-year.
The post <a href="https://blockonomi.com/nvidia-nvda-stock-slips-in-after-hours-despite-record-earnings-and-strong-q2-forecast/" rel="noopener noreferrer nofollow">Nvidia (NVDA) Stock Slips in After-Hours Despite Record Earnings and Strong Q2 Forecast</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Nvidia (NVDA) Stock Slips in After-Hours Despite Record Earnings and Strong Q2 Forecast

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