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Anyone who has seen a good fireworks show knows how it works.
First, a few bright bursts light up the night sky. A shower of sparks. Line of color. A golden explosion crackled for a moment before fading back into the darkness.
Then the pace accelerates.
The bursts come faster. Colors become brighter. The audience gets a little quieter because everyone can sense what’s coming next.
The grand finale.
That’s when the whole sky seems to explode at once – and everyone stops talking, looks up and watches.
Nvidia company (NVDA) This often comes into play during earnings season. That’s why I often refer to it as the grand finale.
This is because NVIDIA is no longer just another semiconductor company. It has become one of the clearest measures of the health of the AI boom.
Investors are not just looking for simple profits. They want evidence that demand for AI chips remains strong, that spending on data centers is still on the rise and that management still sees more growth ahead. As an added bonus, any clues about where the AI boom will go next are always nice too.
NVIDIA made the announcement after the closing bell yesterday, making it the earnings event to watch this week.
So, on the day Market 360In this article, we’ll take a closer look at what NVIDIA’s latest numbers tell us about the AI boom. I’ll also discuss why the biggest fireworks displays are still on display – and what you can do to make a profit.
NVIDIA lights up Wall Street
NVIDIA did exactly what investors were hoping it would do: it had another record quarter.
In the first quarter of fiscal 2027, NVIDIA generated record revenue of $81.6 billion, up 85% year over year and above analyst estimates of $79.12 billion. The biggest driver was again its data center business, which saw revenue jump 92% year over year to a record $75.2 billion.
The profits were also impressive. Q1 earnings rose 140% year-over-year to $1.87 per share. Analysts were looking for earnings of $1.77 per share, so NVIDIA reported an earnings surprise of 5.6%.
But expectations for NVIDIA are very high. This helps explain why the stock’s initial reaction was muted, even after these strong results.
Looking at the second quarter, NVIDIA expects its revenue to reach about $91 billion. This would represent approximately 95% year-on-year growth. Importantly, this forecast does not include any revenue from China, where export restrictions continue to impact sales.
NVIDIA is putting its money where its mouth is…
The company said it invested $18.6 billion in private companies and infrastructure funds during the first fiscal quarter.
This represents a continuation of a much larger strategy.
Over the past few years, NVIDIA has used its money to deepen relationships across the AI ecosystem. This includes investments or strategic partnerships in companies such as OpenAI, CoreWeave, Nebius, Intel Corporation (Intec), Corning, Inc (GLW) and ERIN LIMITED. (Erin).
Now, the company has been criticized for making “circular” investments like this, but I don’t see it that way.
These types of investments are not out of the ordinary. In fact, they’ve touched on key pressure points in building AI — and it tells me that NVIDIA is using its money to beef up the supply chain.
To me, this doesn’t seem like a company poised to cool demand for AI either.
It seems like the company is making sure to create the next phase with NVIDIA at its center.
The company also announced that it added $80 billion to its stock repurchase authorization and raised its quarterly dividend from $0.01 per share to $0.25 per share.
Now, some people might look at the bigger dividend and the huge buyback and assume NVIDIA is running out of ideas.
I don’t see it that way.
Investors have made this mistake with… Apple Inc (AAPL) in 2012, when it reported its first dividend since the 1990s and authorized a $10 billion stock buyback program. Many skeptics assumed the company’s best growth days were over.
They were wrong.
In NVIDIA’s case, this also seems to be a sign of strength.
Think of it this way…
The company is making so much money from the AI boom that it can do multiple things at once:
- Invest aggressively in next generation platforms
- Entering new markets such as central processing units (CPUs).
- Making strategic investments in private companies
- And still more capital is returned to shareholders.
This is not what a company does when it has no room to grow.
This is what a company does when it prints money and still sees a huge opportunity in the future.
The next stage from NVIDIA
For example, perhaps the most important takeaway came from NVIDIA CEO Jensen Huang. On the earnings call, Huang said demand “has become parabolic,” adding that “agent AI has arrived.”
This is a strong statement. This helps explain why NVIDIA’s results matter beyond the company itself.
The term “Agentic AI” refers to artificial intelligence systems that can do more than just answer questions. These systems can reason, make plans, use tools, and perform multi-step tasks with less human input.
This is the shift that investors need to understand.
The first phase of AI was about training models to generate text, images, code, and search.
The next stage is to give these models more autonomy – and put them into practice in science, energy, manufacturing, robotics, defence, healthcare and our everyday lives.
That’s why Hwang’s comment is important.
He tells me that NVIDIA is not only seeing demand for more chips, but is seeing demand for an entirely new type of AI infrastructure.
This also helps explain another important development from NVIDIA’s earnings call.
NVIDIA is no longer content to dominate the GPU (graphics processing unit) market. And now it wants to become a major player in CPUs (central processing units) as well.
This is a big problem.
For many years, NVIDIA GPUs have fueled the AI boom because they are so good at the parallel calculations needed to train large models. But agentic AI is changing computing needs. These systems need to think, plan, use tools, and manage more complex workflows.
This brings CPUs back into the spotlight.
On the earnings call, NVIDIA CFO Colette Kress said the company aims to become “the world’s leading CPU supplier.” She said NVIDIA’s new Vera CPU opens up a “brand new $200 billion” opportunity for the company and could generate $20 billion in CPU revenue this year.
This puts NVIDIA squarely in a market dominated by Intel and… Advanced Micro Devices Company (AMD).
So, the point is that NVIDIA is no longer just selling chips that train AI models. It’s building a more complete computing platform needed for the next stage of AI.
This tells us that demand for AI infrastructure remains incredibly strong.
NVIDIA’s results also confirmed that the AI build process is still moving quickly. Data centers are driving growth, demand for advanced chips remains high, and management forecasts indicate that this trend still has room to continue.
The biggest fireworks display may still be ahead
NVIDIA may have lit up the sky as earnings season ends this week.
But when it comes to AI, I think the biggest fireworks display is probably still ahead. This is the point investors should take away from Huang’s comments.
If agent AI does arrive, the AI boom will enter a new phase. This next phase will require much more than advanced chips.
It will require data centers, power, cooling, advanced manufacturing, automation, networking, and critical components that keep the entire AI creation process going.
That’s why NVIDIA’s latest results have significance beyond NVIDIA itself.
The company tells us that demand remains incredibly strong. It pushes to the central processing units (CPUs). It invests across the AI ecosystem. It returns more money to shareholders. She is still preparing herself for what comes next.
To me, the real message from NVIDIA this quarter is: the AI boom is far from over. I’ve just started…
That’s why I recently prepared a special presentation on what I call… AI reset for 2026.
In it, I explain why building new, government-backed AI could reshape the market beyond NVIDIA — and why some of today’s clear AI winners may not be the biggest winners of what’s next.
I’ll also show you where investors should look as the next wave of AI winners begins to take shape.
sincerely,
Louis Navellier
editor, Market 360
The Editor hereby discloses that as of the date of this email, the Editor owns, directly or indirectly, the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations contained in the article described below, or otherwise mentioned:
NVDA (NVDA)
