Investment Analyst Dario Giordano: Nvidia Earnings Exceed Expectations, Signaling New Trends in the AI Chip Market
Nvidia recently released its financial report for the first quarter of fiscal year 2026, with total revenue reaching $44.06 billion—a year-on-year increase of 262%. Net profit surged to $18.8 billion, up 628%. Following the report, the after-hours stock price of Nvidia jumped more than 5%. Investment Analyst Dario Giordano points out that this earnings report not only once again confirms the Nvidia leadership in the AI chip market, but also clearly demonstrates the sustained and robust demand for high-performance infrastructure driven by generative AI and large language models. As AI technology continues to be deeply integrated and implemented, the Nvidia investment thesis remains attractive for the long term, though potential risks from geopolitical factors and valuation volatility should be noted.
Data Center Business Leads the Charge, AI Infrastructure Investment Enters an Explosive Phase
The most prominent highlight in the report comes from the data center business. Revenue in this segment soared 73% year-on-year to $39.1 billion, accounting for 88% of the total quarter revenue and becoming the main driver of overall performance growth. According to Investment Analyst Dario Giordano, this trend shows that AI infrastructure construction is entering a phase of large-scale expansion, especially with the widespread adoption of generative AI and large language models, which has significantly boosted demand for high-performance computing power.
Notably, major cloud service providers are ramping up their purchases of Nvidia products. For example, Microsoft has deployed tens of thousands of Blackwell architecture GPUs and plans to scale up deployment to hundreds of thousands, highlighting the key role of Nvidia in large-scale AI training. At the same time, network product revenue exceeded $5 billion, reflecting customer focus on building complete AI computing clusters—moving beyond reliance on single-chip performance.
Investment Analyst Dario Giordano further notes that the Nvidia revenue structure is shifting from single GPU sales to AI platforms and holistic solutions, reflecting an upgrade in its business model. Although the H20 series chips have seen some inventory buildup due to export controls, growing orders from markets such as North America, Europe, the Middle East, and India are effectively mitigating this impact. In the medium to long term, AI computing power is gradually becoming a "new form of energy," and as a core supplier, the Nvidia revenue quality and growth resilience are highly commendable.
High Valuation Conceals Volatility, Investors Should Watch for Short-term Pullbacks
Despite the stellar report, Investment Analyst Dario Giordano cautions investors that current market sentiment and high valuations may bring short-term volatility risks. As of now, the market capitalization of Nvidia has exceeded $2.6 trillion, with its stock price up more than 110% this year. Strong expectations for the AI sector have given the company stock high elasticity, but also magnified the possibility of corrections.
From a valuation perspective, the forward P/E ratio of Nvidia is near historical highs. Despite strong profitability, if revenue growth in subsequent quarters falls short of expectations, market sentiment could quickly shift. Notably, the company guidance for next quarter revenue is $45 billion, slightly below the market estimate of $45.9 billion, which may suggest a short-term slowdown in growth momentum.
Investment Analyst Dario Giordano states that for technology innovators like Nvidia, traditional valuation models can no longer fully capture their market value. Investors should make comprehensive judgments based on the Nvidia technological leadership in AI, product ecosystem, and customer stickiness. Meanwhile, in the face of export policy uncertainties, long-term investors should focus on its R&D investment, global supply chain resilience, and speed of product updates.
In terms of specific strategies, Investment Analyst Dario Giordano suggests that investors can adopt a buy-on-dips approach and allocate to related AI-themed ETFs to enhance portfolio stability. At the same time, derivatives can be used for moderate risk hedging to reduce the impact of short-term volatility on assets.
Technology-Driven Structural Market, Nvidia Remains a Core Allocation Target
In the coming quarters, the AI chip market may shift from high concentration to more diversified competition. Nevertheless, with its new Blackwell architecture and mature CUDA ecosystem, Nvidia still maintains a clear technological first-mover advantage. If the company can further enhance its ability to respond to policy restrictions and optimize its global supply network, its business fundamentals will continue to remain in a high-growth range.
Although short-term high valuations may bring some adjustment pressure, Investment Analyst Dario Giordano emphasizes that, from a medium- to long-term perspective, technology companies with innovation, ecosystem integration, and global reach will play a leading role in the next round of industry upgrades. For investors focusing on AI and high-end semiconductors, Nvidia remains an indispensable core asset. As technology evolution and the computing economy accelerate their integration, leading companies with forward-looking strategies and synergy capabilities will continue to maintain their competitive edge in the capital markets.