{"id":47547,"date":"2026-05-21T06:17:21","date_gmt":"2026-05-21T06:17:21","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/47547\/"},"modified":"2026-05-21T06:17:21","modified_gmt":"2026-05-21T06:17:21","slug":"nvidia-rises-as-ai-demand-outruns-expectations","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/analysis\/47547\/","title":{"rendered":"NVIDIA Rises as AI Demand Outruns Expectations"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/05\/1_NVDA2-1-1024x573.webp\" alt=\"\" class=\"wp-image-44078\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>NVIDIA traded at <strong>223.38<\/strong>, up <strong>1.96<\/strong>, or <strong>0.89%<\/strong>, after reaching a session high of <strong>225.87<\/strong>.<\/li>\n\n\n\n<li>Revenue increased <strong>85%<\/strong> to <strong>$81.62 billion<\/strong>, while adjusted earnings came in at <strong>$1.87<\/strong> per share.<\/li>\n\n\n\n<li>Data centre revenue surged <strong>92%<\/strong> to <strong>$75.25 billion<\/strong>, led by both hyperscale and ACIE customers.<\/li>\n\n\n\n<li>NVIDIA approved an <strong>$80 billion<\/strong> share buyback and raised its quarterly dividend to <strong>$0.25<\/strong> per share from <strong>$0.01<\/strong>.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/opinion\/nvidia-china-h200-ai-trade\/?utmsource=DMA\" target=\"_blank\" rel=\"noreferrer noopener\">NVIDIA<\/a> reported another strong quarter, but Wall Street had already priced in a lot of good news. The stock traded at <strong>223.38<\/strong>, up <strong>1.96<\/strong>, or <strong>0.89%<\/strong>, at <strong>05\/20 22:59:58 GMT+3<\/strong>. The session high stood at <strong>225.87<\/strong>, with a low of <strong>220.49<\/strong>, an open at <strong>222.61<\/strong>, and a close at <strong>221.42<\/strong>.<\/p>\n\n\n\n<p>The company\u2019s revenue increased <strong>85%<\/strong> to <strong>$81.62 billion<\/strong>, while adjusted earnings came in at <strong>$1.87<\/strong> per share. Analysts had expected <strong>$78.86 billion<\/strong> in revenue and <strong>$1.76<\/strong> per share. AP also reported that revenue beat the <strong>$78.91 billion<\/strong> forecast, while NVIDIA guided for current-quarter revenue of around <strong>$91 billion<\/strong>, above analyst expectations of <strong>$87.29 billion<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Nvidia beat on Q1 earnings. Here&#39;s what to know. \ud83d\udcad<br>Revenue: $81.62B \ud83d\udcb0<br>Adjusted EPS: $1.87 \ud83d\udcb8<br>Data center revenue $75.2B<br><br>Nvidia CFO also said 50% of its data center revenue came from AI hyperscalers. <a href=\"https:\/\/t.co\/kmhC7ErKyL\">pic.twitter.com\/kmhC7ErKyL<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/2057200097885143193?ref_src=twsrc%5Etfw\">May 20, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The beat still failed to trigger a clean relief rally. NVIDIA shares fell more than <strong>1%<\/strong> in after-hours and overnight trading, with NVDA down <strong>1.2%<\/strong> at one stage. Traders wanted proof that AI demand remains strong, but they also wanted a wider upside surprise after months of heavy expectations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Data Centre Growth Still Drives The Story<\/h2>\n\n\n\n<p>The data centre segment remains NVIDIA\u2019s engine. Revenue surged <strong>92%<\/strong> to a better-than-expected <strong>$75.25 billion<\/strong>, giving traders more detail on where AI demand is coming from.<\/p>\n\n\n\n<p>NVIDIA split the segment into hyperscale and ACIE customers, which cover AI Clouds, Industrial, and Enterprise users. Hyperscaler server revenue grew <strong>115%<\/strong> year-on-year and <strong>12%<\/strong> sequentially to <strong>$37.87 billion<\/strong>. ACIE revenue rose <strong>74%<\/strong> year-on-year and <strong>31%<\/strong> sequentially to <strong>$37.38 billion<\/strong>.<\/p>\n\n\n\n<p>That breakdown changes the market narrative. NVIDIA is no longer leaning only on Amazon, Microsoft, and Alphabet. Smaller cloud firms, AI operators, industrial customers, and enterprise buyers are becoming a much larger part of demand. ACIE growth outpaced hyperscalers on a sequential basis, showing that AI infrastructure demand is spreading beyond the largest cloud platforms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Vera CPU Opens A New Growth Track<\/h2>\n\n\n\n<p>NVIDIA also pushed deeper into the CPU market. Chief Financial Officer Colette Kress said the Vera CPU opens a new <strong>$200 billion<\/strong> total addressable market, adding that the company has visibility to nearly <strong>$20 billion<\/strong> in total CPU revenue this year.<\/p>\n\n\n\n<p>The Vera CPU, introduced at <strong>GTC 2026<\/strong> as part of the Vera Rubin AI platform, is an Arm-based processor built for AI and data centre workloads. That puts NVIDIA into more direct competition with Intel and Advanced Micro Devices in server CPUs.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"ro\" dir=\"ltr\">Nvidia announces Vera Rubin Space-1 chip system for orbital AI data centers <a href=\"https:\/\/t.co\/ovlAtLo0n5\">https:\/\/t.co\/ovlAtLo0n5<\/a><\/p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/2033643137856397421?ref_src=twsrc%5Etfw\">March 16, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The market reaction showed how quickly that threat can move across the chip sector. Intel and AMD shares dropped <strong>0.7%<\/strong> in the overnight session ahead of Thursday. ARM shares rose nearly <strong>3%<\/strong>, while NVIDIA shares were down <strong>1.2%<\/strong>.<\/p>\n\n\n\n<p>Vera also expands NVIDIA\u2019s total addressable market beyond GPUs. Jensen Huang said the company sees upside beyond its previously discussed <strong>$1 trillion<\/strong> revenue visibility from three areas: a larger share of frontier AI model workloads, standalone Vera CPU sales, and adoption of specialised LPX systems. Huang had previously forecast <strong>$1 trillion<\/strong> in sales from Blackwell and Rubin AI chips between <strong>2025<\/strong> and <strong>2027<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">AI Demand Broadens, But Supply And China Still Matter<\/h2>\n\n\n\n<p>NVIDIA\u2019s wider AI story remains strong. Big Tech is expected to pour more than <strong>$700 billion<\/strong> into AI this year, up from around <strong>$400 billion<\/strong> in <strong>2025<\/strong>. That spending supports NVIDIA\u2019s chips, systems, and data-centre pipeline.<\/p>\n\n\n\n<p>The risks have also become clearer. NVIDIA\u2019s supply commitments jumped from <strong>$50.3 billion<\/strong> to <strong>$95.2 billion<\/strong> between the last two quarters of its latest fiscal year.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Nvidia shares set for $350 billion price swing after earnings, options show <a href=\"https:\/\/t.co\/IvLlNEE8xx\">https:\/\/t.co\/IvLlNEE8xx<\/a> <a href=\"https:\/\/t.co\/IvLlNEE8xx\">https:\/\/t.co\/IvLlNEE8xx<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2057135535114567951?ref_src=twsrc%5Etfw\">May 20, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The company has avoided the worst of the memory-chip crunch so far, but traders are watching whether data-centre capacity, memory costs, chip packaging, and Rubin ramp-up expenses pressure margins later in the year.<\/p>\n\n\n\n<p>China remains another overhang. NVIDIA has yet to sell its H200 chips there, while Beijing continues to push local alternatives. Huang\u2019s recent trip alongside President Donald Trump raised hopes for progress, but the market still needs policy detail before it prices a clean China recovery.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Capital Returns Add Support<\/h2>\n\n\n\n<p>NVIDIA added a shareholder-return angle to the earnings story. The company disclosed <strong>$30 billion<\/strong> worth of cloud computing agreements, up sequentially from <strong>$27 billion<\/strong>.<\/p>\n\n\n\n<p>It also raised its quarterly cash dividend to <strong>$0.25<\/strong> per share from <strong>$0.01<\/strong> per share and approved an <strong>$80 billion<\/strong> share buyback. AP reported the same buyback and dividend increase, which helped soften the disappointment from the muted share reaction.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Turns out, the best investment Nvidia could find in the AI boom\u2026 is Nvidia. <a href=\"https:\/\/t.co\/s6iXGmsDxu\">https:\/\/t.co\/s6iXGmsDxu<\/a> <a href=\"https:\/\/t.co\/9Ff3EZ29AF\">pic.twitter.com\/9Ff3EZ29AF<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/2057207382090875260?ref_src=twsrc%5Etfw\">May 20, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Retail traders stayed firmly behind the stock. On Stocktwits, retail sentiment for NVDA climbed multiple points higher in the <strong>extremely bullish<\/strong> zone, with <strong>extremely high<\/strong> message volume. After remaining subdued for months, NVDA shares have gained over the past month and are now up <strong>19%<\/strong> year-to-date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Macro Risk Can Still Cap The Rally<\/h2>\n\n\n\n<p>NVIDIA\u2019s earnings arrived while global markets were dealing with higher yields and oil-driven inflation risk. Global stocks fell earlier in the week as the <strong>30-year<\/strong> US Treasury yield rose to its highest level since <strong>2007<\/strong>, while the AI trade faced a major test from NVIDIA\u2019s results.<\/p>\n\n\n\n<p>Oil also remains a pressure point. Brent rose <strong>81 cents<\/strong>, or <strong>0.77%<\/strong>, to <strong>$105.83<\/strong> a barrel, while WTI gained <strong>97 cents<\/strong>, or <strong>0.99%<\/strong>, to <strong>$99.23<\/strong> as uncertainty over the Iran war and inventory drawdowns kept supply concerns active.<\/p>\n\n\n\n<p>Higher oil can feed inflation, lift bond yields, and reduce the valuation room for growth stocks. NVIDIA can still rise on earnings power, but the stock needs AI demand to keep outrunning the drag from rates, energy costs, and China policy risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis<\/h2>\n\n\n\n<p>NVIDIA is trading around <strong>223.38<\/strong>, consolidating after a powerful breakout rally that pushed the stock to fresh highs near <strong>236.49<\/strong>. The broader trend remains firmly bullish, although momentum has started cooling after an aggressive multi-week advance from the April low near <strong>164.24<\/strong>.<\/p>\n\n\n\n<p>Technically, NVIDIA still maintains a strong uptrend structure:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>MA5:<\/strong> 225.79<\/li>\n\n\n\n<li><strong>MA10:<\/strong> 222.28<\/li>\n\n\n\n<li><strong>MA20:<\/strong> 213.52<\/li>\n<\/ul>\n\n\n\n<p>Price remains above the 10-day and 20-day moving averages, which confirms buyers still control the medium-term trend. However, the stock has slipped slightly below the 5-day average, signalling some near-term consolidation after the recent surge.<\/p>\n\n\n\n<p>The rally since early April has been extremely steep, with NVIDIA climbing nearly 36% in just over a month. Moves of that scale often lead to temporary cooling periods as traders lock in profits and momentum funds rebalance exposure.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/05\/image-27-1024x456.jpg\" alt=\"\" class=\"wp-image-50748\"\/><\/figure>\n\n\n\n<p>Key levels to monitor:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Immediate support:<\/strong> 222.00 \u2192 213.50<\/li>\n\n\n\n<li><strong>Major support:<\/strong> 200.00<\/li>\n\n\n\n<li><strong>Resistance:<\/strong> 236.50<\/li>\n\n\n\n<li><strong>Major breakout zone:<\/strong> 242.00 \u2192 250.00<\/li>\n<\/ul>\n\n\n\n<p>The <strong>236.50 <\/strong><strong>high<\/strong> now acts as the immediate ceiling. Buyers attempted to break through that level but lost momentum, resulting in several smaller-bodied candles and pullbacks around resistance. That usually reflects hesitation rather than outright bearish reversal.<\/p>\n\n\n\n<p>Importantly, the broader structure still resembles a healthy bullish consolidation rather than distribution. The 20-day moving average continues rising sharply, and price remains comfortably above the April breakout zone.<\/p>\n\n\n\n<p>Fundamentally, NVIDIA continues benefiting from relentless AI infrastructure demand, hyperscaler spending, and data centre expansion themes. Markets remain heavily focused on GPU demand, sovereign AI investment, and the company\u2019s dominance in AI training workloads.<\/p>\n\n\n\n<p>Volume has stayed elevated throughout the rally, which supports the idea that institutional participation remains strong. Importantly, the latest pullback has not yet shown panic-style selling volume.<\/p>\n\n\n\n<p>If NVIDIA can stabilise above the <strong>222\u2013223 region<\/strong>, buyers may attempt another push toward <strong>236.50<\/strong> and eventually the <strong>242\u2013250 zone<\/strong>. However, a break below the 20-day average near <strong>213.50<\/strong> would weaken short-term momentum and expose a deeper retracement toward <strong>200<\/strong>.<\/p>\n\n\n\n<p>For now, NVIDIA remains in a <strong>strong bullish medium-term trend<\/strong>, though the stock appears to be entering a digestion phase after an overheated upside run.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cautious Forecast<\/h2>\n\n\n\n<p>NVIDIA keeps a constructive bias while it holds above <strong>220.49<\/strong> and <strong>213.52<\/strong>. A recovery above <strong>225.87<\/strong> would support another move toward <strong>236.49<\/strong>, especially if traders focus on the <strong>92%<\/strong> data-centre growth, <strong>$20 billion<\/strong> CPU revenue visibility, and the <strong>$80 billion<\/strong> buyback.<\/p>\n\n\n\n<p>A break below <strong>213.52<\/strong> would weaken the setup and suggest the earnings beat was not enough to defend the current valuation. The strongest upside path needs three forces to align: data-centre demand remains broad across hyperscale and ACIE customers, Vera CPU guidance builds confidence in the next growth leg, and macro pressure from oil, yields, and China policy starts to ease.<\/p>\n\n\n\n<p><strong>Create a live <a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noreferrer noopener\">VT Markets account<\/a> today to access market insights, educational content, and new trading opportunities across AI and Space themes.<\/strong><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>Trader Questions<\/strong><\/summary>\n<p><strong>What Is Nvidia Trading<\/strong><strong> At<\/strong><strong> Today?<\/strong><\/p>\n\n\n\n<p>Nvidia traded at <strong>223.38<\/strong>, up <strong>1.96<\/strong>, or <strong>0.89%<\/strong>.<\/p>\n\n\n\n<p>The session high was <strong>225.87<\/strong>, with a low of <strong>220.49<\/strong>, an open at <strong>222.61<\/strong>, and a close at <strong>221.42<\/strong>.<\/p>\n\n\n\n<p><strong>Why Did Nvidia Stock Fall After Earnings?<\/strong><\/p>\n\n\n\n<p>Nvidia stock slipped after hours because Wall Street had already priced in a strong quarter.<\/p>\n\n\n\n<p>The company beat expectations, but the upside surprise was not large enough to trigger a clean rally. Shares were down more than <strong>1%<\/strong> in after-hours and overnight trading, with NVDA down <strong>1.2%<\/strong> at one point.<\/p>\n\n\n\n<p><strong>How Strong Were Nvidia\u2019s Q1 Earnings?<\/strong><\/p>\n\n\n\n<p>Nvidia\u2019s Q1 earnings were strong. Revenue rose <strong>85%<\/strong> to <strong>$81.62 billion<\/strong>, while adjusted earnings came in at <strong>$1.87<\/strong> per share.<\/p>\n\n\n\n<p>Analysts had expected <strong>$78.86 billion<\/strong> in revenue and <strong>$1.76<\/strong> per share.<\/p>\n\n\n\n<p><strong>How Did Nvidia\u2019s Data Centre Business Perform?<\/strong><\/p>\n\n\n\n<p>Nvidia\u2019s data centre revenue surged <strong>92%<\/strong> to <strong>$75.25 billion<\/strong>.<\/p>\n\n\n\n<p>That segment remains the main driver of Nvidia\u2019s growth, supported by AI chip demand, global data centre expansion, and stronger spending from cloud and enterprise customers.<\/p>\n\n\n\n<p><strong>What Are Hyperscale And ACIE Customers?<\/strong><\/p>\n\n\n\n<p>Hyperscale customers include major cloud players such as Amazon, Microsoft, and Alphabet.<\/p>\n\n\n\n<p>ACIE refers to AI Clouds, Industrial, and Enterprise customers. Nvidia said ACIE revenue rose <strong>74%<\/strong> year-on-year and <strong>31%<\/strong> sequentially to <strong>$37.38 billion<\/strong>.<\/p>\n<\/details>\n\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>NVIDIA holds near highs as AI chip demand, Vera CPU plans and macro risk shape the next move.<\/p>\n","protected":false},"author":38,"featured_media":47544,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-47547","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":[],"aioseo_notices":[],"featured_image_src":"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/05\/NVDA2-1-600x400.webp","featured_image_src_square":"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/05\/NVDA2-1-600x600.webp","author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/47547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=47547"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/47547\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media\/47544"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=47547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=47547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=47547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}