NVIDIA (NVDA) Stock Dips After Hours Despite Blowout Earnings and $91B Guidance

TLDR

• NVIDIA beat Q1 EPS estimates by $0.10, reporting $1.87 vs. the $1.77 consensus, with revenue of $81.6B topping the $79.19B forecast.
• Q2 revenue guidance of $91B came in well above Wall Street’s $87.36B estimate.
• NVIDIA announced an $80B share repurchase program and raised its quarterly dividend to 25 cents from 1 cent.
• CEO Jensen Huang touted the new “Vera” CPU as opening a $200B market, targeting $20B in Vera revenue by fiscal year-end.
• Despite the beat, NVDA stock fell roughly 1.6% in after-hours trading as investors weighed growing competition from custom chips.

NVIDIA closed at $223.47 on Wednesday before reporting earnings after the bell. The stock dipped about 1.6% in extended trading despite a solid beat on both earnings and revenue.

NVIDIA Corporation, NVDA

For its fiscal first quarter, NVIDIA posted revenue of $81.62B, ahead of the $78.86B analyst estimate. Earnings per share came in at $1.87 on an adjusted basis, beating the $1.77 consensus by $0.10.

Data center revenue hit $75.2B for the quarter, above the $72.8B estimate. That business remains the core engine of NVIDIA’s growth.

Q2 guidance of $91B — plus or minus 2% — cleared the $87.36B Wall Street forecast by a wide margin. At the high end, that puts revenue near $92.8B.

NVIDIA also announced an $80B share repurchase program and bumped its quarterly cash dividend from 1 cent to 25 cents per share. That’s a 2,400% increase in the dividend.

The Vera Chip Opens a New Front

CEO Jensen Huang used the earnings call to spotlight NVIDIA’s “Vera” central processor, calling it access to a new $200B market. He said NVIDIA expects $20B in Vera revenue by the end of this fiscal year.

Critically, that $20B was not included in NVIDIA’s earlier $1 trillion estimate covering Blackwell and Rubin AI chips through 2027. Huang said he expects Vera to become the second-largest revenue contributor beyond that $1 trillion figure.

To get ahead of supply chain issues, NVIDIA’s supply commitments rose to $119B in Q1, up from $95.2B the prior quarter.

Competition Is Building

The after-hours dip reflects a growing concern on Wall Street: NVIDIA’s biggest customers are building their own chips.

Alphabet, Amazon, and Microsoft are collectively expected to spend over $700B on AI infrastructure in 2025, up from roughly $400B in 2024. A chunk of that is going into custom silicon designed to reduce reliance on NVIDIA hardware.

Intel and AMD are also pushing into the inference chip market, which is becoming increasingly important as AI workloads shift from training to running models.

NVIDIA hasn’t stood still. In March, it unveiled a new CPU and AI system built on technology from Groq, the inference-focused chip startup.

Huang pointed to a new sub-segment within the data center business — AI-specific cloud firms — where sales roughly matched those from large cloud players but grew faster quarter-over-quarter. “We should be growing faster than hyperscale capex,” Huang said.

NVIDIA has seen 34 positive EPS revisions and just one negative revision in the last 90 days, according to InvestingPro, which rates its financial health as “excellent performance.”

The stock is up 17.73% over the past three months and 69.55% over the past year.

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