Nvidia Delivers a Blowout Quarter and a Robotics Bet, Yet the Stock Stays Stuck in the Shadows

Nvidia posts record Q1 revenue of $81.6B and 211% net income surge, but stock falls for fourth straight quarter after earnings. New robotics push with Kawasaki and $200B Vera Rubin CPU opportunity signal strategic shift.

The world's most valuable chipmaker just posted numbers most companies can only dream of — and the market yawned. Nvidia’s stock slipped for the fourth consecutive quarter after beating earnings, a pattern that says more about investor expectations than the company’s underlying health. The shares changed hands at around €190 on Friday, roughly 5 percent below their 52-week high of €201.05 set in mid-May, with the relative strength index cooling to 40.5.

The headline figures are staggering. Revenue for the first quarter of fiscal 2027 hit a record $81.6 billion, up 85 percent from a year ago. Net income soared 211 percent to $58.32 billion. On a GAAP basis, diluted earnings per share came in at $2.39, well ahead of the $1.87 analysts had pencilled in. Non-GAAP earnings per share, which strip out certain items, reached $1.87 — also above the consensus estimate of $1.78. The data-center business remained the engine room, accounting for 92 percent of total revenue with $75.2 billion in sales, a 92 percent jump. Operating cash flow hit $50.3 billion.

For the current quarter, Nvidia guided to around $91 billion in revenue, comfortably above market expectations, while maintaining a gross margin of roughly 75 percent. Yet the stock failed to rally. The worry list includes supply constraints, geopolitical friction, and a sense that even these records may already be priced in.

A Robotics Bet Takes Shape

Alongside the numbers, Nvidia announced a joint development center with Kawasaki Heavy Industries in Silicon Valley, focused on robotics powered by physical artificial intelligence. The partnership targets medical and mobility robots — including assistive systems for caregivers and Kawasaki’s four-legged Corleo robot. Kawasaki plans to hire dozens of local AI engineers within a few years. The center also involves Analog Devices, Microsoft, and Fujitsu. For Corleo, Nvidia’s simulation technology will improve control and environmental perception.

The robotics push follows a broader wave of investment in autonomous systems and so-called agentic AI. Nvidia expects more than $1 trillion to be poured into AI infrastructure by the end of this year, with the annual figure climbing to $3 trillion to $4 trillion by 2030.

Vera Rubin: A $200 Billion CPU Opportunity

CEO Jensen Huang has already outlined the next growth lever: the Vera Rubin platform, combining a new Vera central processing unit with the Rubin graphics processor. Production is slated to begin later this year, with volume shipments in 2026. Huang described demand as “parabolic” and warned that supply shortages would persist throughout the product cycle.

The Vera CPU alone represents a $200 billion addressable market, according to Nvidia. The company is targeting roughly $20 billion in CPU revenue by the end of 2026. That would mark a significant strategic shift for a company historically dominant in GPUs. Purchase and production commitments for the second quarter already stand at $119 billion, up from $95.2 billion in the prior quarter — a clear signal that Nvidia is investing heavily in its own future.

The China Hole and the Buyback Boost

One glaring omission in the guidance: Nvidia expects zero revenue from China in the current quarter, thanks to escalating US export restrictions that block sales of its Hopper chips. Huang acknowledged that Huawei has become “very, very strong” in its home market and that Nvidia has “largely given up” on China as a growth driver. That admission has unnerved investors who once viewed the region as a key market.

To offset some of that anxiety, Nvidia dramatically increased its capital returns. The quarterly dividend will jump from $0.01 to $0.25 per share — a 2,400 percent increase — payable on June 26. The board also authorized a new $80 billion share buyback program, on top of $38.5 billion still outstanding from earlier authorizations.

Analysts Stay Bullish, but the Market Has Its Doubts

The combination of record results, a robotics expansion, and the Vera CPU roadmap triggered a wave of price-target upgrades. Baird lifted its target from $300 to $500, maintaining an “Outperform” rating, citing market share gains in inference and hyperscaler segments. KeyBanc moved to $310, Needham to $270, Barclays reiterated “Overweight” at $275, and Melius went to $400. Argus and RBC also raised their targets to $270.

Yet the stock’s failure to break above its 52-week high suggests the market is weighing the supply-chain risks, China exposure, and the possibility that even explosive growth may slow from here. Whether Nvidia can deliver the Vera Rubin cycle without major disruptions — and stabilize its relationship with Beijing — will determine whether the shares finally catch up with the underlying business.