Analyst: Nvidia's New Business Segment Growth Indicates the AI Boom is Just Beginning

Odaily Planet Daily News Phil Rosen, an analyst for the renowned US business magazine Inc., stated that Nvidia's (NVDA.O) latest financial results once again easily surpassed Wall Street's earnings expectations, putting concerns about an AI bubble to rest for at least another quarter. All the debates and bearish forecasts regarding hyperscaler capital expenditure, data center construction, and tech leadership have vanished in the face of this impressive balance sheet.

In the first quarter of fiscal 2026, Nvidia's data center business 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 sequential increase of 31%. The new segmentation of its business into cloud, industrial, and enterprise indicates that Nvidia is telling investors: the business is no longer driven by just a few hyperscalers.

Meanwhile, Nvidia increased its quarterly dividend 25-fold 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. (Jin Shi)