Articles Tagged: data center

2 articles found

Nvidia beats on earnings and guidance, but stock wobbles as data center whispers loom large

Nvidia cleared Wall Street’s bar again. For fiscal Q2 2026 (reported Aug. 27), the AI leader delivered adjusted EPS of 1.05 versus 1.01 expected and revenue of $46.74 billion versus $46.06 billion expected, and guided the current quarter to $54 billion (±2%), modestly ahead of the roughly $53.1 billion consensus — while reiterating that multiyear AI infrastructure demand should remain robust. Yet shares slipped as investors digested a second straight quarter of data center revenue arriving a touch light versus whisper numbers and as China-related H20 shipments remained excluded from guidance amid licensing uncertainty. The reaction underscores how perfection has become the default expectation two years into the AI buildout (according to CNBC).

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Nvidia’s AI Flywheel: Self-Funding Growth Machine or Late-Cycle Euphoria?

In late May, Nvidia reported a quarter that would be outlandish for most companies and merely exceptional for itself: $44.06 billion in revenue and $18.78 billion in net income for Q1 FY2026, the fiscal quarter ended April 27, 2025, according to SEC filings. Free cash flow in the period reached $26.19 billion—enough to cover aggressive buybacks, rising R&D, and capital investments while still lifting the cash stockpile. Shares subsequently pushed to fresh 52-week highs, peaking near $183.88, according to Yahoo Finance. Investors are asking a deceptively simple question with complex implications: Is Nvidia’s run the rational repricing of a dominant platform business or a late-cycle overshoot tethered to capex exuberance at the hyperscalers? This article examines the financial evidence, valuation and cash conversion dynamics, and the practical constraints that could test the durability of this AI bull case. We synthesize official filings and market data to separate verified operating power from speculative extrapolation—and to identify what would have to go right, or wrong, from here.

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