<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>A valuation of over $5 trillion shouldn't scare investors away from Nvidia stock. </li><li>Some may be overlooking what makes Nvidia unique. </li><li>Nvidia generates enormous free cash flow, and it is increasingly returning some to shareholders. </li><li>10 stocks we like better than Nvidia ›</li></ul>Nvidia's (NASDAQ: NVDA) quarterly earnings reports are among the most anticipated events for investors. The company provides a window into the future of technology and, particularly, artificial intelligence (AI) developments.Shares surged about 15% since its fiscal 2026 fourth-quarter report in late February, ahead of its latest results. Now that Nvidia has reported another stellar fiscal 2027 first quarter, investors will be trying to determine where Nvidia stock goes from here. Based on management's latest outlook and the company's penchant for beating that guidance, I predict the stock will continue to push higher over the coming months. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MTAzOS9udmRhLnBuZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MTAzOS9udmRhLnBuZyZ3PTcwMA"/>Image source: The Motley Fool. <h2>Jensen's latest update</h2>CEO Jensen Huang told investors in March that he expects Nvidia's leading Blackwell and Rubin GPU chips will bring in $1 trillion in sales through 2027. In the latest report, Huang reiterated that the expansion of AI factories that need its GPU chips continues to accelerate rapidly. Huang summarized his company's enviable position, stating: <blockquote> Nvidia is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced -- from hyperscale data centers to the edge. </blockquote><h2>Nvidia has room to run</h2>With a market cap of over $5 trillion, investors may feel like the gains have already been made in Nvidia stock. Two things make Nvidia unique, though. Its revenue growth rate for a company this size is unheard of. Quarterly revenue grew 73% year over year in Q4 and another 85% in the most recent quarter. Guidance also calls for about 95% year-over-year revenue growth in the current quarter, which continues the pattern of massive sales growth. That is remarkable, especially given that no sales to China are included in that guidance. Nvidia's gross profit margin also continues to hover around 75%, despite soaring component prices, such as memory chips. That profitability level means its valuation based on the price-to-earnings (P/E) ratio remains reasonable. Based on expected fiscal 2027 earnings, Nvidia's P/E is still just about 26. That compares favorably to Alphabet, Amazon, and Apple. <h2>Shareholder returns</h2>While Nvidia already had an aggressive share repurchase program to return capital to shareholders, it has also announced an increase in its $0.01 quarterly dividend to $0.25 per share. That, along with a new $80 billion share repurchase plan, means it is committing another $100+ billion to return to shareholders. Considering the company generated $48.5 billion in free cash flow in Q1 alone, that makes sense and shows its commitment to return excess cash to shareholders.Nvidia's underlying momentum will remain tied to the expanding use of AI, particularly agentic AI. The company has even reorganized its revenue reporting, with two new categories: data center and edge computing. Edge computing includes the processing equipment needed for agentic and physical AI. The most recent earnings report shows Nvidia's growth is hardly slowing. It is, in fact, accelerating, and the company is generating so much cash that it has instituted a much more meaningful dividend. With AI factory growth still in its relatively early stages, Nvidia stock remains a buy at its recent valuation. <h2>Should you buy stock in Nvidia right now?</h2> Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $481,750!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,352,457!* Now, it’s worth noting Stock Advisor’s total average return is 990% — a market-crushing outperformance compared to 206% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 21, 2026. Howard Smith has positions in Alphabet, Amazon, Apple, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

Nvidia Q1 results are in — revenue of $81.6bn (+85% YoY), adj. EPS (+140% YoY), and data center revenue of $75.2bn (92% of total) all beat estimates. Q2 guidance came in at $91bn, excluding China data center revenue. The board also authorized an additional $80bn buyback and raised the dividend 24x. All upside on paper — yet the stock swung lower by more than 3% in after-hours before turning positive. The market has grown accustomed to Nvidia beating by a wide margin; a 3.1% beat this time around was seen as underwhelming. Add in repricing noise from a revised reporting framework, and sentiment is clearly divided at a ~$6tn market cap. Are you backing Nvidia to keep its crown — or calling a pullback from the top?

Nvidia Q1 results are in — revenue of $81.6bn (+85% YoY), adj. EPS (+140% YoY), and data center revenue of $75.2bn (92% of total) all beat estimates. Q2 guidance came in at $91bn, excluding China data center revenue. The board also authorized an additional $80bn buyback and raised the dividend 24x. All upside on paper — yet the stock swung lower by more than 3% in after-hours before turning positive. The market has grown accustomed to Nvidia beating by a wide margin; a 3.1% beat this time around was seen as underwhelming. Add in repricing noise from a revised reporting framework, and sentiment is clearly divided at a ~$6tn market cap. Are you backing Nvidia to keep its crown — or calling a pullback from the top?

Nvidia Beats Estimates — But the Market Isn't Buying It?

NVDA Q1 just dropped. Revenue USD 81.6 billion (+85% YoY). Adjusted EPS +140% YoY. Data center revenue USD 75.2 billion (~92% of total). Every line beat consensus. Q2 guidance: USD 91 billion, and that excludes any China data center revenue. The board also added USD 80 billion to the buyback authorization and lifted the quarterly dividend by 24x.&nbsp;On paper, all green. But the stock dropped over 3% after-hours before clawing back. The market has gotten used to bigger NVDA beats, and a 3.1% top-line surprise wasn't enough this time. Layer on repricing noise from a revised reporting framework, and at the USD 6 trillion mark, the disagreement is real.&nbsp;Continued AI king run, or first real high-altitude correction?

NVDA Q1 just dropped. Revenue USD 81.6 billion (+85% YoY). Adjusted EPS +140% YoY. Data center revenue USD 75.2 billion (~92% of total). Every line beat consensus. Q2 guidance: USD 91 billion, and that excludes any China data center revenue. The board also added USD 80 billion to the buyback authorization and lifted the quarterly dividend by 24x.&nbsp;On paper, all green. But the stock dropped over 3% after-hours before clawing back. The market has gotten used to bigger NVDA beats, and a 3.1% top-line surprise wasn't enough this time. Layer on repricing noise from a revised reporting framework, and at the USD 6 trillion mark, the disagreement is real.&nbsp;Continued AI king run, or first real high-altitude correction?

NVDA Beats Every Line Yet Stock Wobbles?

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Nvidia's latest earnings report shows impressive growth, with quarterly revenue increasing 85% year-over-year. The company is uniquely positioned in the AI sector, expecting $1 trillion in sales from its GPU chips by 2027. Nvidia has announced a significant increase in its dividend and a new $80 billion share repurchase plan, reflecting its commitment to returning capital to shareholders. Despite its high market cap, analysts suggest Nvidia stock remains a buy due to its strong financial performance and growth potential in AI.

- Nvidia's valuation exceeding $5 trillion should not deter investors, given its substantial free cash flow and shareholder returns.  
- The company reported remarkable revenue growth, with a projected increase of 95% in the current quarter, despite soaring component prices.  
- With consistent cash generation and an aggressive $100 billion buyback plan, Nvidia remains a compelling investment as AI technologies expand.

Is Nvidia a Buy After Their Latest Earnings Report?