Nvidia Stock Trades Flat Despite $1 Trillion Sales Target as ‘Market Expects Nvidia to Keep Beating Expectations’

A caller occurrence of Reuters Morning Bid focused connected 1 of the strangest signals successful the AI marketplace close now. NVIDIA (NASDAQ:NVDA) announced an $80 billion banal buyback, raised its dividend sharply, and projected $1 trillion successful income of its astir precocious AI chips "just this twelvemonth and next."

Despite the bully news, the banal hardly moved. The Reuters big argued that expectations astir NVIDIA whitethorn person go truthful elevated that adjacent bonzer results are nary longer capable to meaningfully astonishment investors.

The Flat-Reaction Paradox

Capital returns astatine this standard usually spark a large re-rating. NVIDIA’s committee approved the $80.0 billion repurchase authorization connected May 18, 2026, successful summation to the $38.5 billion remaining nether its anterior buyback program. The institution besides raised its quarterly dividend from $0.01 to $0.25 per share.

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The underlying 4th was arsenic massive. NVIDIA reported $81.6 billion successful revenue, up 85.2% twelvemonth implicit year, portion non-GAAP EPS came successful astatine $1.87, up of statement expectations. CEO Jensen Huang described the AI buildout arsenic “the largest infrastructure enlargement successful quality history.”

Yet shares inactive slipped. According to Fuse data, NVDA fell 4.43% during the week ending May 22, closing astatine $215.33. The Reuters big argued the marketplace already expected NVIDIA to “keep beating expectations to this degree,” portion rising enslaved yields whitethorn beryllium limiting however overmuch investors are consenting to wage for long-duration AI maturation stories. Higher yields compress valuation multiples crossed maturation stocks, peculiarly companies wherever investors are already pricing successful years of exceptional expansion.

Nvidia’s Biggest Customers May Become Its Biggest Competitors

The Reuters conception besides highlighted the biggest semipermanent carnivore lawsuit surrounding NVIDIA. Many of the company’s largest hyperscale customers are progressively trying to trim dependence connected NVIDIA chips by designing their ain silicon internally. “Google, Meta, Microsoft are progressively making their ain chips,” the big noted, portion adding that “AMD and Intel are besides catching up.” The companies spending the astir wealth connected AI infrastructure whitethorn yet determine they nary longer privation NVIDIA taking specified a ample stock of the economics.