NVDA Q2 Guidance of 91B Clears Wall Street Range by 5 Billion

Nvidia's earnings report landed as the most concrete signal yet that AI capex acceleration remains intact despite months of skepticism about peak spending. The company posted Q1 revenue of 81.6 billion, well ahead of the 79.2 billion consensus, with net income surging 140% year-over-year. What mattered more: the Q2 guidanceCompany-issued forecasts of future financial performance. of 91 billion in revenue, which exceeded Wall Street's 84-86 billion range and excluded any meaningful contribution from China's data center market.

This guidanceCompany-issued forecasts of future financial performance. is the core of the narrative. In recent months, bears had argued that while hyperscalers were raising capex targets, those dollars might not materialize on Nvidia's income statement, or worse, that peak demand had already arrived. The 91-billion guidance directly contradicts both concerns. Data Center revenue of 75.2 billion in Q1, up 92% year-over-year, shows the sustained pull-through from Blackwell and prior generation inventory.

The earnings have implications across multiple asset classes. Semiconductor names rallied on the news, with AMD up 8% intraday. Broadcom and other supply-chain beneficiaries extended gains. At the same time, the beat has shored up the thesis that mega-cap tech concentration in the S&P 500 is justified by earnings growth, at least for now. The top 5 stocks now account for over 40% of index returns year-to-date, and Nvidia's performance underwrites that concentration.

The debate now centers on whether 91-billion guidanceCompany-issued forecasts of future financial performance. is a peak quarter or a floor for further acceleration. Some analysts worry that guidance conservatism masks slower demand ahead, while bulls argue the company is simply managing expectations after years of misses. The stock slid in after-hours trading despite the beat, a sign that even strong results face skepticism on valuation.