21 May 2026
If you are covering Nvidia’s latest financial results, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
“Nvidia’s share price had underperformed year to date compared to its peers as investors got increasingly concerned about competition and that AI capex may eventually slow. Its results last night helped alleviate those fears and suggested the capex environment remains both supportive and productive as the returns on those investments by the hyperscalers looks healthy.
“The company did its usual beat and raise, but importantly spelled out to investors how it is tackling concerns out there in the market. Three things stood out in particular, however. Firstly, it announced a new reporting structure where it will specifically call out revenue from hyperscalers, allowing us as investors to track how it is doing compared to the capex growth of those companies – undoubtedly a good thing and allows us to assess its market share in this area. Secondly, while Nvidia focuses primarily on GPUs, it remains the biggest player in CPUs, dwarfing AMD and Intel with $20bn of sales in CPU. And finally, it is upping its dividend and share buyback, going on the trajectory Apple once did by increasing shareholder returns. While the returns remain tiny, it is hoped this is the start of the journey for more returns.
“The problem for Nvidia is that when you are the behemoth that it is, it is very difficult to make significant gains and thus the market will be more punishing. The narrative remains very good for Nvidia, and its valuation isn’t stretched to concerning levels, but there are potentially better growth opportunities out there in the semiconductor world just now.”
