Anyone who has ever watched a good fireworks show knows how it works.
At first, a few bright bursts light up the night sky. A shower of sparks. A streak of color. A golden burst that crackles for a moment before fading back into the dark.
Then the pace picks up.
The bursts come faster. The colors get brighter. The crowd gets a little quieter because everyone can feel what’s coming next.
The grand finale.
That’s when the whole sky seems to explode at once – and everyone stops talking, looks up and watches.
NVIDIA Corporation (NVDA) often plays that role during earnings season. That’s why I often refer to it as the grand finale.
That’s because NVIDIA is no longer just another semiconductor company. It has become one of the clearest gauges for the health of the artificial intelligence boom.
Investors aren’t just looking for a simple earnings beat. They want proof that AI chip demand is still strong, that data center spending is still climbing and that management still sees more growth ahead. And as an added bonus, any clues about where the AI boom is headed next are always nice, too.
NVIDIA reported after the closing bell yesterday, making it this week’s must-watch earnings event.
So, in today’s 蜜桃传媒 360, we’ll take a closer look at what NVIDIA’s latest numbers tell us about the AI boom. I’ll also discuss why the biggest fireworks show may still be ahead – and what you can do to profit.
NVIDIA Lights Up Wall Street
NVIDIA did exactly what investors were hoping it would do: It delivered another record quarter.
For its first quarter in fiscal year 2027, NVIDIA achieved record revenue of $81.6 billion, up 85% year-over-year and above analysts’ estimates for $79.12 billion. The big driver was once again its data center business, which saw revenue jump 92% year-over-year to a record $75.2 billion.
Earnings were also impressive. First-quarter earnings surged 140% year-over-year to $1.87 per share. Analysts were looking for earnings of $1.77 per share, so NVIDIA posted a 5.6% earnings surprise.
But expectations for NVIDIA are sky-high. That helps explain why the stock’s initial reaction was muted, even after such strong results.
Looking ahead to the second quarter, NVIDIA expects revenue of about $91 billion. That would represent about 95% year-over-year growth. Importantly, that forecast does not include any revenue from China, where export restrictions have continued to weigh on sales.
NVIDIA Is Putting Its Money Where Its Mouth Is…
The company said it invested $18.6 billion in private companies and infrastructure funds during its fiscal first quarter.
That continues a much larger strategy.
Over the past few years, NVIDIA has used its cash to deepen ties across the AI ecosystem. That includes investments or strategic partnerships in companies like OpenAI, CoreWeave, Nebius, Intel Corporation (INTC), Corning, Inc. (GLW) and IREN Ltd. (IREN).
Now, the company has been criticized for making “circular” investments like this, but I don’t see it that way.
These types of investments are not out of the ordinary. In fact, they touch the key pressure points in the AI buildout – and it tells me NVIDIA is using its cash to strengthen the supply chain.
And to me, that does not look like a company preparing for AI demand to cool off, either.
It looks like a company making sure the next phase gets built with NVIDIA at the center of it.
The company also announced that it added $80 billion to its share-repurchase authorization and raised its quarterly dividend from $0.01 per share to $0.25 per share.
Now, some folks may look at a bigger dividend and a massive buyback and assume NVIDIA is running out of ideas.
I do not see it that way.
Investors made that mistake with Apple, Inc. (AAPL) back in 2012, when it announced its first dividend since the 1990s and authorized a $10 billion share-buyback program. Plenty of skeptics assumed the company’s best growth days were over.
They were wrong.
In NVIDIA’s case, this also looks more like a sign of strength.
Think about it this way…
The company is generating so much cash from the AI boom that it can do multiple things at once:
- Invest aggressively in its next-generation platforms
- Push into new markets like CPUs
- Make strategic investments into private companies
- And still return more capital to shareholders.
That is not what a company does when it is running out of room to grow.
That is what a company does when it is printing cash and still sees a massive opportunity ahead.
NVIDIA’s Next Phase
For example, the most important takeaway might have come from NVIDIA CEO Jensen Huang. On the earnings call, Huang said demand has “gone parabolic,” adding that “Agentic AI has arrived.”
That’s a powerful statement. And it helps explain why NVIDIA’s results matter far beyond the company itself.
“Agentic AI” refers to AI systems that can do more than answer questions. These systems can reason, make plans, use tools and carry out multi-step tasks with less human input.
That is the shift investors need to understand.
The first phase of AI was about training models to generate text, images, code and research.
The next phase is about giving those models more independence – and putting them to work across science, energy, manufacturing, robotics, defense, health care and our everyday lives.
That is why Huang’s comment matters.
It tells me NVIDIA is not just seeing demand for more chips – it’s seeing demand for an entirely new kind of AI infrastructure.
That also helps explain another important development from NVIDIA’s earnings call.
NVIDIA is no longer content to dominate the GPU (graphics processing unit) market. Now it wants to become a major player in CPUs (central processing units), too.
That is a big deal.
For years, NVIDIA’s GPUs have powered the AI boom because they are very good at the parallel math needed to train large models. But agentic AI changes the computing needs. These systems need to reason, plan, use tools and manage more complicated workflows.
That brings CPUs back into the spotlight.
On the earnings call, NVIDIA Chief Financial Officer Colette Kress said the company is aiming to become the “world’s leading CPU supplier.” She said NVIDIA’s new Vera CPU opens a “brand new $200 billion” opportunity for the company and could generate $20 billion in CPU revenue this year.
That puts NVIDIA directly into a market long dominated by Intel and Advanced Micro Devices, Inc. (AMD).
So, the key point is this: NVIDIA is no longer just selling the chips that train AI models. It is building more of the full computing platform needed for the next phase of AI.
This tells us that AI infrastructure demand remains incredibly strong.
NVIDIA’s results also confirmed that the AI buildout is still moving fast. Data centers are driving growth, advanced chips remain in high demand and management’s outlook suggests the trend still has room to run.
The Biggest Fireworks Show May Still Be Ahead
NVIDIA may have lit up the sky as this week’s grand finale of earnings season.
But when it comes to AI, I believe the biggest fireworks show may still be ahead. That’s the point investors should take from Huang’s comments.
If agentic AI has truly arrived, then the AI boom is entering a new phase. And this next phase will require far more than advanced chips.
It will require data centers, power, cooling, advanced manufacturing, automation, networking and the critical components that keep the entire AI buildout moving.
That is why NVIDIA’s latest results matter far beyond NVIDIA itself.
The company is telling us demand remains incredibly strong. It is pushing into CPUs. It is investing across the AI ecosystem. It is returning more cash to shareholders. And it is still positioning itself for what comes next.
To me, the real message from NVIDIA this quarter is: The AI boom is not over. It’s just getting started…
That’s why I recently put together a special presentation about what I call the .
In it, I explain why a new government-backed AI buildout could reshape the market far beyond NVIDIA – and why some of today’s obvious AI winners may not be the biggest winners of the next phase.
I also show you where investors should look as the next wave of AI winners starts to take shape.
Sincerely,
Louis Navellier
Editor, 蜜桃传媒 360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA)
