NVDA Stock Turns Green In Premarket: Sustained AI Demand, CPU Push, Secure Component Supply Lift Sentiment

• NVDA reported Q1 revenue and profit above expectations, and its data center revenue nearly doubled.
• Nvidia said it's pushing harder into the CPU market, a market which it believes is a $200 billion revenue opportunity.
• “We have strategically secured inventory and capacity to meet demand beyond the next several quarters,” CFO Colette Kress said.

Nvidia shares rose 0.2% after a volatile start to premarket trading on Thursday. The stock had rallied sharply in recent weeks, suggesting investors had already priced in a strong report, limiting the scope for further gains similar to the muted next-day reactions following Nvidia’s previous quarterly earnings.

Still, analysts responded with optimistic commentary around Nvidia's performance, highlighting various growth levers from sustained AI chip demand to the company’s push in the CPU market as catalysts for the near-term stock performance.

“Another robust eye popping quarter from Nvidia. Demand continues to accelerate well beyond Street expectations. Hugely important print and guide for Godfather of AI Jensen,” WedBush analyst Dan Ives said on X. “Ripple impacts across the tech world,” he forecast.

NVDA’s Q1 Recap

Nvidia’s fiscal first quarter revenue increased 85% to $81.62 billion, and adjusted earnings came in at $1.87 per share. Analysts had expected $78.86 billion in revenue and a $1.76. per share profit.

Nvidia also disclosed $30 billion worth of cloud computing ⁠agreements, up sequentially ​from $27 billion. The company increased its quarterly cash dividend to $0.25 per share from $0.01 per share and approved an $80 billion share buyback.

More importantly, Nvidia for the first time broke down data center its core data center segment – where revenue surged 92% to a better-than-expected $75.25 billion – into Hyperscale and ACIE (AI Clouds, Industrial, and Enterprise). It said that sales to non-hyperscaler customers were as much as those to hyperscalers.

NVDA’s Market Expansion

Separately, Nvidia is betting that its CPUs will become a major part of its business going forward. On the analyst call, Chief Financial Officer Colette Kress said, “Vera CPU opens a brand-new $200 billion TAM (total addressable market) for Nvidia, a market we have never addressed before.”

“What I think people are missing in this print: NVIDIA has expanded the product line in significant ways,” Patrick Moorhead, Chief Analyst at Moor Insights, said on X.

“The Groq LPU for inference. Entire Vera CPU racks. These are two important points that are not fully reflected in the numbers and not in most sell-side equations.”

He added that the Nvidia’s buyback appears to be the company’s attempt to lift the stock, which has underperformed peers of late. “On the $80B buyback authorization and the dividend raise: NVIDIA is testing the waters on what propels the stock forward. They had an amazing 2025, and yet NVDA is the 3rd worst performer in the SOX year to date. If beating earnings and raising guidance does not move it, maybe returning capital to shareholders will,” Moorhead said.

NVDA’s Supply Check

Deepwater Asset Management's Gene Munster a key take-away from Nvidia’s report was the company’s confidence around component supply at a time when the industry faces shortages of memory chips.

“We have strategically secured inventory and capacity to meet demand beyond the next several quarters,” Nvidia CFO Colette Kress said in prepared remarks.

“That says they are not, and not expecting to be supply or production constrained. In other words, the growth rates we see are the real growth rates,” Munster said.

As of their last close, Nvidia shares have gained 20% year to date. In comparison, the iShares Semiconductor ETF (SOXX) has gained 72%. On Stocktwits, the retail sentiment was ‘extremely bullish’ for NVDA and ‘bearish’ for SOXX as of early Thursday.

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