Nvidia has forecast second-quarter revenue above Wall Street estimates and announced an $80 billion share buyback program, signaling confidence in sustained AI infrastructure demand.
The company expects revenue of $91 billion, plus or minus 2%, for the quarter, compared to analyst estimates of $86.84 billion. Nvidia’s Q1 revenue came in at $81.62 billion, beating expectations of $78.86 billion, with data center revenue reaching $75.2 billion.
Nvidia raised its quarterly cash dividend from 1 cent to 25 cents per share. The results are considered a key barometer for AI demand, as its chips power most major data centers globally.
However, competition is intensifying. Big Tech firms like Alphabet, Amazon, and Microsoft-who are expected to spend over $700 billion on AI this year-are developing custom chips for inferencing, posing a long-term threat to Nvidia’s dominance. Rivals Intel and AMD are also targeting the inference market. In response, Nvidia unveiled a new processor and AI system based on Groq technology in March.