Analyst: NVIDIA's New Business Segment Growth Suggests the AI Boom Is Just Beginning

According to Odaily, Phil Rosen, an analyst for the renowned U.S. business magazine Inc., stated 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 expenditures, data center construction, and technology leadership have dissipated in the face of this impressive balance sheet.

In the first quarter of fiscal year 2026, NVIDIA's data center business alone contributed $75.2 billion, 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% quarter-over-quarter increase. The new classification of its business into cloud, industrial, and enterprise segments signals that NVIDIA is telling investors its growth is no longer driven solely by a few hyperscalers.

Meanwhile, NVIDIA increased its quarterly dividend 25 times to $0.25 per share and added an $80 billion share repurchase program. In short, the company has so far given little reason for concern, and the data suggests this situation is unlikely to change in the near term. (Jinshi)