Nvidia announced record quarterly profit and revenue for the February-April period, with profit soaring to $58.3 billion, a 37 percent increase from the previous quarter and over 200 percent year-on-year. The surge is attributed to explosive demand for its advanced artificial intelligence chips.

The US tech giant's results underscore the significant growth in the AI sector, with its data-center business emerging as the primary engine. This segment's quarterly revenue jumped 92 percent year-on-year to $75.2 billion, highlighting the increasing reliance on powerful computing infrastructure for AI development and deployment.

Overall revenue for the quarter reached $81.6 billion, marking a 20 percent increase from the prior quarter and an 85 percent rise compared to the same period in 2025. Nvidia also issued a strong forecast for the current quarter, projecting revenue to hit $91 billion, surpassing most analysts' expectations. The company's hardware unit contributed $6.4 billion in revenue, up 29 percent from the previous year.

In a move to reward shareholders, Nvidia announced an $80 billion stock buyback program and an increase in its quarterly cash dividend from $0.01 to $0.25 per share. CEO Jensen Huang described the results as "extraordinary," attributing the demand to the arrival of "agentic AI" and its capability to perform productive work.

Despite surpassing analyst expectations, Nvidia's stock saw a slight dip of nearly 1.3 percent in after-hours trading. This muted market reaction reflects the exceptionally high expectations placed on the company, whose market capitalization has surged to over $5 trillion since 2022 due to its rapid growth in the AI chip market.

The spectacular rise of Nvidia and other tech giants like Microsoft and Amazon has fueled discussions about a potential market bubble and whether the current AI boom is overhyped. Analysts note that the company's consistent strong performance sets a high bar for generating further excitement on Wall Street.

Jay Goldberg, a senior analyst at Seaport Research, commented that "Expectations are very high, and when a company like Nvidia has been doing as well as it has for so long, it takes a lot for people to get excited." He added that this sentiment is typical of the stock market, especially when many tech stocks have experienced significant gains.

Nvidia's dominance in the AI chip market, particularly with its data center solutions, positions it at the forefront of the AI revolution. The company's ability to meet the escalating demand for its specialized processors is crucial for the continued advancement of AI technologies across various industries.