NVIDIA Corporation's (NVDA.US) performance "normalized beat" hard to dispel investor doubts! Huang Renxun said: Promoting business diversification and fully covering the field of physical AI.

Facing increasing scrutiny from investors, NVIDIA Corporation (NVDA.US) emphasized in its latest quarterly earnings report that the company is advancing its business diversification, with the goal of reducing its dependence on large data center operators that have been driving its performance growth. While spending from large data center clients - known as "hyperscalers" - continues to surge, NVIDIA Corporation forecasts that many other enterprises and government institutions will soon become larger sources of revenue. These customers are expected to purchase NVIDIA Corporation's chips and other computing products to support their respective artificial intelligence (AI) strategies. CEO Jensen Huang stated in a conference call with analysts that in the long term, the so-called "physical AI" will bring a massive new opportunity through Siasun Robot&Automation and autonomous vehicles, saying "we have full coverage in this area." However, investors are becoming increasingly difficult to impress. Despite NVIDIA Corporation surpassing analysts' expectations with its financial performance and guidance, its stock price fell about 1% after hours on Wednesday. Even the company's expansion of shareholder returns, including a significant increase in dividends - the company announced raising dividends from $0.01 per share to $0.25 per share quarterly, along with an $80 billion stock buyback program - did not dispel investor concerns. For the first quarter ending April 26, 2026, NVIDIA Corporation achieved revenue of $81.62 billion, an 85% year-over-year increase, well exceeding analysts' expectations of $78.75 billion to $79.2 billion. Adjusted earnings per share were $1.87, also surpassing the market estimate of $1.75 to $1.77. Net profit for the quarter amounted to $58.3 billion, a 211% increase year-over-year, nearly triple that of the same period last year. The data center business remains the core growth engine. Data center revenue for the quarter reached $75.2 billion, a 21% increase from the previous quarter and almost double the $39.1 billion from the same period last year, far surpassing analysts' expectations of $72.8 billion. Edge computing revenue was $6.4 billion, a 10% year-over-year increase. NVIDIA Corporation reformed its financial reporting methodology for this quarter, splitting the data center business into two sub-markets: "hyperscale" and "ACIE" (AI Cloud, Industrial, and Enterprise), to better reflect current and future growth drivers. "Hyperscale" will include revenue from public clouds and the world's largest consumer internet companies, while ACIE focuses on growth opportunities for NVIDIA Corporation in various industries and specialized AI data centers and factories around the world. Edge computing will focus on data processing devices for intelligent agents and physical AI, including PCs, gaming consoles, workstations, AI-RAN base stations, Siasun Robot&Automation, and automotive applications. Looking ahead to the second quarter, NVIDIA Corporation expects revenue to reach $91 billion, with a +/- 2% fluctuation. This figure is higher than the analysts' general expectation of $86.88 billion and exceeds the median value of $87 billion previously reported by some media. However, the issue lies in the expected "ceiling". Despite analysts' average forecast being $87 billion, privately circulated expectations among buying institutions have quietly climbed to $96 billion. While the $91 billion guidance constitutes a statistically positive outcome, it falls short of satisfying investors who have already set their expectations at the maximum. Meanwhile, NVIDIA Corporation is facing the first major challenges to its AI computing dominance, as several chip manufacturers are attempting to gain a share of this market. AMD (AMD.US) has introduced competitive products, while Broadcom Inc. (AVGO.US) and Alphabet Inc. Class C (GOOGL.US) are also entering the market with their proprietary technologies. Despite this, NVIDIA Corporation remains in an enviable position. Wall Street expects that NVIDIA Corporation's revenue will account for more than one-third of the semiconductor industry's total sales this year. Jensen Huang stated in a release, "The construction of AI factories - the largest infrastructure expansion in human history - is accelerating at an unprecedented pace." The data center spending, which is NVIDIA Corporation's main revenue source, shows no signs of slowing down. Hyperscale cloud service providers are planning to invest approximately $725 billion in the AI field this year. From NVIDIA Corporation's latest earnings report, it is clear that revenue growth from these companies continues to outpace other sources. This not only drives the growth of AI accelerators but also boosts demand for general-purpose CPUs, thereby supporting the performance of Intel Corporation (INTC.US) and AMD. Chip "newcomers" are also benefiting - Cerebras Systems (CBRS.US), which uses large-scale silicon design, completed the largest IPO of the year last week. NVIDIA Corporation continues to expand into new business areas. The company has started selling general-purpose processors and introduced chip products specifically for AI inference. The company expects CPU business revenue to reach $20 billion this year, making it the largest CPU supplier globally. In addition, NVIDIA Corporation also provides networking equipment, software, AI models, and even complete computer systems. The company's management believes that this makes the company difficult to be shaken in terms of coverage and capabilities. NVIDIA Corporation stated that current order volumes have exceeded its production capacity and is investing in expanding supply capabilities to meet demand.