Analyst: Nvidia’s New Business Segment Growth Signals the AI Boom Has Only Just Begun

Odaily Odaily analyst Phil Rosen of Inc., a renowned U.S. business magazine, notes that Nvidia's (NVDA.O) latest earnings report once again easily surpassed Wall Street's profit expectations, calming fears of an AI bubble for at least another quarter. All the debates and bearish predictions regarding hyperscaler capital expenditure, data center construction, and tech leadership have dissipated in the face of this impressive balance sheet.

In the first quarter of fiscal 2026, Nvidia's data center segment alone contributed $75.2 billion, accounting for approximately 92% of total revenue. Hyperscaler buyers contributed $38 billion; while the newly segmented AI cloud, industrial, and enterprise sectors contributed $37.2 billion, a 31% increase quarter-over-quarter. This new segmentation of the business into cloud, industrial, and enterprise indicates that Nvidia is telling investors: the business is no longer driven solely by a handful of hyperscalers.

Meanwhile, Nvidia raised its quarterly dividend by 25 times to $0.25 per share and added an $80 billion share repurchase program. Overall, the company has so far given little reason for concern. And the data suggests this situation is unlikely to change in the near term. (Jin Shi)