Nvidia strong results: Shares up 20x in 44 months; dividend zooms 25x, m-cap tops 125% of India Inc

World's most valued company Nvidia reported record quarterly revenue of $81.6 billion for the first quarter of fiscal 2027, beating Wall Street estimates as demand for artificial intelligence chips remained strong. The quarter ended on April 26, with revenue up 85 per cent from a year earlier and 20 per cent from the previous quarter.

The US-based tech behemoth reported a net profit of $58.3 billion, up 200 per cent on a yearly basis and 37 per cent sequentially. It forecasted revenue of $91 billion for the current quarter, ahead of analysts’ estimate of $86.84 billion, according to the reports. Nvidia, whose chips power major data centres and advanced AI models, is widely seen as a barometer for the AI industry.

AI infrastructure spending continues to rise, with Alphabet, Amazon and Microsoft expected to spend more than $700 billion on AI this year, up from about $400 billion in 2025. At the same time, competition is increasing as companies invest in custom chips for inferencing, while Intel and Advanced Micro Devices target the fast-growing inference market.

In March, Nvidia unveiled a new central processor and AI system built on technology from AI chip start-up Groq. It also reported adjusted earnings of $1.87 per share, above estimates of $1.76, while data centre revenue reached $75.2 billion and beat market expectations.

Nvidia's gains were driven mainly by demand for its high-end AI processors, which are used to power large language models and other advanced systems. As tech platforms and enterprise customers continued to invest in AI infrastructure, Nvidia remained a central supplier to the sector.

Based in Santa Clara, California, Nvidia has become a major provider of graphics processing units used in data centres worldwide, underlining its role in the expanding AI ecosystem. The company has been a key beneficiary of the broader build-out of AI capacity.

The chipmaker shared a detailed plan to return cash to shareholders through dividends and buyback. Nvidia's board approved a share repurchase programme of up to $80 billion, while its dividend was raised by 25 times from 25 cent per share to 1 cent apiece.

To recall, shares of Nvidia have zoomed more than 20 times or delivered more than 1,900 per cent return to investors from its level around $11 in October 2022, while the stock settled at $223.30 on Wednesday. Nvidia has cemented its place as the world's most valued company. Interestingly, Nvidia is world's second most valued asset after gold.

Nvidia's rally is anchored in fundamentals — hyperscaler capex is projected near $700 billion in 2026, and Nvidia has visibility into roughly $500 billion of Blackwell and Rubin revenue through end-2026, said Viram Shah, Co-founder & CEO, Vested Finance. "Risks remain real: customer concentration, US-China export curbs, and rising competition from AMD and in-house hyperscaler silicon."

For Indian investors, the takeaway is simple- the AI wealth-creation cycle is unfolding largely outside India's borders. Global diversification is no longer optional; it's how Indian portfolios participate in the defining economic story of this decade, Shah said.

Nvida's total market capitalization stand above $5.4 trillion, where as the entire marketcap of BSE-listed companies stood at $4.8 billion as of Wednesday. Nvidia alone accounts for 125 per cent of India's total mcap. Even Alphabet, the parent company of Google, commands a total market capitalization of $4.66 trillion.

Majority of the brokerage firms have raised their price targets on Nvidia even ahead of its stellar earnings. HSBC raised its price target on Nvidia Corp shares to $325 from $295 and maintained a 'buy' rating on the stock. Morgan Stanley also lifted its target price of Rs $285 from $260 earlier. Bank of America has a target price of $320 for Nvidia.

Among other brokerage firms, Bernstein, Keybanc and Cantor Fitzgerald have maintained an 'overweight' stance on the stock, while UBS has a 'buy' rating on it.