Jennifer Saibil, The Motley Fool
6 min read
In This Article:
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Nvidia surpassed expectations for revenue and earnings in the 2026 fiscal first quarter.
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CEO Jensen Huang sees a future where generative AI is embedded into all everyday applications.
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Amazon is the largest global provider of cloud computing services and will benefit from developers bringing AI into their applications.
It's been a good week for shareholders of Nvidia (NASDAQ: NVDA). The market has been worried about the powerhouse artificial intelligence (AI) company, but management assuaged many fears about its future opportunities and its ability to thrive despite regulatory issues that are weighing on its financial statements.
CEO Jensen Huang gave many positive updates, and they don't just bode well for Nvidia, but for the long-term potential of generative AI -- and more specifically, AI superstar Amazon (NASDAQ: AMZN).
The market wasn't sure what to expect from Nvidia's latest earnings release. Although the semiconductor giant is the dominant chipmaker in the industry, there have been a few updates that some believe mar its investing thesis.
The market was disturbed when Chinese AI platform DeepSeek came out earlier this year, making people question whether or not Nvidia's high-priced chips were really necessary for generative AI development. And some chip shipments have been disrupted by regulatory efforts to keep the U.S.'s best equipment out of China.
But performance has continued swimmingly at Nvidia, and it just released another fabulous round of earnings for the 2026 fiscal first quarter (ended April 27). Revenue increased 69% year over year to $44.1 billion, better than the $43.3 billion analysts were expecting, and adjusted earnings per share (EPS) were $0.96, better than the $0.93 target from analysts. Including a one-time charge related to deliveries it couldn't ship due to regulations about what chips it could send to China, EPS was $0.81, still way ahead of $0.60 last year.
But it's the long-term outlook that keeps Nvidia's investing thesis strong. On the earnings call, Huang said: "We know that AI is this incredible technology that's going to transform every industry from, of course, the way we do software to healthcare and financial services to retail to, I guess, every industry, transportation, manufacturing. And we're at the beginning of that."
Nvidia is now addressing the demand that it has helped create. Its most advanced chips, Blackwell, are selling fast, and they're in high demand from its large cloud computing clients like Amazon and Microsoft, the two largest global cloud providers.
