AI TRENDS | Nvidia's Earnings Surpass Expectations, Eases AI Bubble Concerns

Nvidia's recent financial report has once again exceeded Wall Street's earnings expectations, according to Phil Rosen, an analyst from the renowned U.S. business magazine Inc. This development has temporarily alleviated concerns about an AI bubble for at least another quarter. According to Jin10, debates over capital expenditures by hyperscale vendors, data center construction, and technological leadership have been dispelled by Nvidia's impressive balance sheet. In the first quarter of fiscal year 2026, Nvidia's data center business alone contributed $75.2 billion, accounting for approximately 92% of total revenue. Hyperscale buyers contributed $38 billion, while the newly segmented AI cloud, industrial, and enterprise divisions added $37.2 billion, marking a 31% quarter-over-quarter growth. This new business segmentation indicates that Nvidia is signaling to investors that its growth is no longer driven by just a few hyperscale vendors. Additionally, Nvidia has increased its quarterly dividend by 25 times to $0.25 per share and announced a new $80 billion share repurchase plan. Overall, the company has provided little cause for concern, and data suggests that this situation is unlikely to change in the short term.