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Jensen Huang with Grace Blackwell chips
(Screenshot: Nvidia)

Nvidia delivers another sales and earnings beat in Q1, with strong Q2 revenue guidance

Shareholder returns are going up too!

Luke Kawa

Nvidia is whipsawing in postmarket trading after reporting better-than-expected Q1 results along with strong sales guidance for Q2.

Fiscal Q1 2027 marked the chip designer’s 15th consecutive top-line beat and 14th straight quarter in which the company posted adjusted earnings per share above what Wall Street had penciled in.

Management also boosted its buyback authorization by $80 billion and raised the quarterly dividend to $0.25 from $0.01.

During the conference call, analysts will be looking for potential upside to CEO Jensen Huang’s March announcement that sales of Blackwell and Rubin chips (as well as associated networking equipment) would top $1 trillion through 2027.

In particular, the outlook for its Vera CPUs as well as for products developed with Groq’s capabilities will be in focus as fresh avenues for even more growth. Both address parts of the supply chain that are seemingly facing more constraints than GPUs — CPUs thanks to the particular compute requirements of AI agents, and memory as widening context windows reduce the speed of models and increase token usage.

With this quarterly report, Nvidia is unveiling a new framework for how it reports sales: a data center segment, and edge computing. The latter segment includes “data processing devices for agentic and physical AI” — perhaps a hint that Huang’s expected evolution of demand going from agentic AI to physical AI will be reflected more meaningfully in Nvidia’s financials going forward.

For the past few quarters, Nvidia has enjoyed an initial pop following earnings only to see that fizzle out thereafter — sometimes because of what Huang has said, and other times for seemingly no reason whatsoever.

Nvidia, the First Big Thing in the AI boom, was the second-best performer in the Magnificent 7 in 2026 heading into this report, up about 20%. However, it’s more of a laggard (and a dullard) relative to its semiconductor peers, as traders have been more aggressively bidding up companies tied to memory, networking, and CPUs that are benefiting from AI-induced shortages.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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