Nvidia posts record profit and revenue amid AI chip boom | Technology
Nvidia Reports Record Profit Amid AI Demand Surge
Chip giant announces $80 billion stock buyback and dividend increase, benefiting shareholders.
May 21, 2026
Nvidia has reported a record quarterly profit and revenue, driven by heightened demand for its advanced AI chips. The Santa Clara, California-based company announced on Wednesday that its profit for the February-April period reached $58.3 billion, marking a 37% increase from the previous quarter and a more than 200% rise year-over-year.
Revenue climbed to $81.6 billion, up 20% from the previous quarter and an 85% increase compared to the same period last year. The data center business was the primary growth driver, recording a 92% year-over-year revenue surge to $75.2 billion. The company’s hardware unit generated $6.4 billion, representing a 29% increase from the previous year.
To enhance value for shareholders, Nvidia also announced a new $80 billion stock buyback program and an increase in its quarterly cash dividend from $0.01 to $0.25 per share.
CEO Jensen Huang called the results “extraordinary,” attributing the demand increase to the rise of semi-autonomous AI models. “Demand has gone parabolic,” he said during a conference call with investors and analysts.
Despite surpassing analysts’ expectations, Nvidia’s stock experienced a nearly 1.3% decline in after-hours trading. This drop indicates the high expectations surrounding the company, whose market capitalization has soared to over $5 trillion since 2022.
The rapid ascent of Nvidia and the elevated valuations of other technology firms, such as Microsoft and Amazon, have sparked debate about whether the AI sector is overhyped and potentially in a market bubble. Jay Goldberg, a senior analyst for semiconductors and electronics at Seaport Research, pointed out that Nvidia’s prolonged success creates a challenging environment for continued excitement among investors.
“Expectations are very high,” Goldberg explained. “It takes a lot for people to get excited when a company like Nvidia has been outperforming for so long.”
William Rhind, CEO and founder of GraniteShares, expressed that the market’s muted reaction reflects a scenario where expectations have aligned with the company’s fundamentals. He noted that the stock buyback and dividend increase indicate that Nvidia has “more cash than it can possibly redeploy into the business.”
John Belton, portfolio manager at Gabelli Funds, stated that Nvidia’s latest earnings results should not significantly change the overall narrative. “It’s another solid earnings report,” he said, describing it as more of the same positive trends without any groundbreaking developments.
As Nvidia’s performance remains strong, the company’s ability to navigate evolving market dynamics will continue to draw the attention of investors and analysts alike.
