NVDA Stock Slips After Hours: Expectation-Beating Q1, Share Buybacks, And Dividends Do Little To Shake Zero China Revenue Assumptions

• Raises dividend to $0.25 per share from $0.01 per share. 
• Announces $80 billion worth of share repurchases.
• Q1 revenue and earnings beat analyst expectations. 

Nvidia shares eased about 1% in after-hours trading after the chipmaker’s strong Q2 revenue guidance failed to excite investors amid its decision to assume zero China data-center revenue.  

Sales in the second quarter of FY27 will be about $91 billion, the company said in a statement. According to Bloomberg, analysts estimated $87 billion on average, while Fiscal.ai estimated as high as $97 billion for the current quarter. 

Nvidia has also been keen on selling its chips in Chinese markets. While NVDA’s CEO Jensen Huang joined U.S. President Donald Trump on his recent visit to China, which resulted in talks around selling its H200 chips, there has been no concrete deal signed yet. 

“NVIDIA is not assuming any Data Center compute revenue from China in its outlook,” the chipmaker wrote in its earnings statement.  

Nvidia currently is the top seller of AI chips and a market leader, but is facing intense competition from other U.S. chipmakers as well as hyperscalers like Amazon and Alphabet, who are trying to develop their own chips to reduce their reliance on Nvidia. 

Recently listed Cerebras and its silicon are also being touted as rivals to Nvidia’s chips. 

The company undoubtedly retains its top position so far and has consistently beaten earnings expectations over several quarters, which analysts have begun to price into the stock, with most attention on the expected growth and new markets the company can tap in the coming years. 

“Nvidia delivered another beat, but at this point that’s essentially priced in as it keeps beating quarter after quarter,” Emarketer analyst Jacob Bourne said in a note, accessed by Bloomberg. “The lingering question is whether it can convince investors the AI build-out has durability into 2027 and 2028.” 

Nvidia boosted shareholder rewards by increasing its quarterly dividend to $0.25 a share from a $0.01. The chipmaker also announced $80 billion in stock repurchases. 

NVDA’s New Reporting Framework 

NVIDIA is transitioning to a new reporting framework that better reflects its current and future growth drivers. NVIDIA will have two market platforms — Data Center and Edge Computing. Within Data Center, NVIDIA will report two sub-markets, Hyperscale and ACIE, which include AI Clouds, Industrial, and Enterprise. 

Hyperscale will include revenue from the public clouds and the world’s largest consumer internet companies, while ACIE addresses NVIDIA’s growth opportunity in diverse AI purpose-built data centers and AI factories across industries and countries. Edge Computing highlights data processing devices for agentic and physical AI, including PCs, game consoles, workstations, AI-RAN base stations, robotics, and automotive. 

NVDA’s Q1 Highlights 

Nvidia reported record revenue for the first quarter ended April 26, 2026, of $81.6 billion, up 20% from the previous quarter and up 85% from a year ago, while also beating analyst expectations of  $78.86 billion. 

The company reported adjusted earnings of $1.87 per share, beating estimates of $1.76 per share.

“Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries,” said Jensen Huang, founder and CEO of NVIDIA. “NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced — from hyperscale data centers to the edge.”  

NVDA Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘extremely high’ message volumes. 

 One user highlighted possible competition from China in the chipmaking business. 

The stock has soared 20% year-to-date.

Read More: Dow Clocks Best Day So Far This Month, S&P 500 And Nasdaq Climb As Oil, Yields Cool Off— META, LOW, HAS, NVDA, INTU In Focus

For updates and corrections, email newsroom[at]stocktwits[dot]com.