Nvidia's Record Cash Pile and CPU Invasion Set Up a High-Stakes Computex
Published on 06/01/2026 at 07:32 | Redaktion boerse-global.de
Jensen Huang takes the stage in Taipei on Monday with the strongest balance sheet in Nvidia's history, yet the stock sits nearly 10% below its peak, leaving the market hungry for more than just another chip reveal.
The company closed Friday at €181.40, a 9.77% slide from the May all-time high of €201.05. The pullback has cooled momentum — the relative strength index sits at 36.4 — but the stock still holds a 13% gain for the year and more than 50% over twelve months. Last year's Computex week triggered a 10.4% rally after Huang unveiled the annual GPU architecture cycle. The stakes for 2026 are even higher.
A Dividend Milestone and a $80 Billion Buyback Backdrop
Nvidia's financial firepower is undeniable. In the first quarter of fiscal 2027, revenue hit a record $81.6 billion, up 85% year over year. The data center segment alone delivered $75.2 billion, a 92% surge. Non-GAAP gross margins rebounded to 75.0%, recovering from a 60.8% print a year earlier when a $4.5 billion H20 export charge dragged the figure down.
Core operating profit jumped 147%, pushing the core margin to 65.6%. Free cash flow skyrocketed to $48.6 billion, up from $34.9 billion the prior quarter and $26.1 billion a year ago. That cash generation is feeding a generous capital return program: the quarterly dividend was raised from $0.01 to $0.25 per share, and the board greenlit an additional $80 billion in share buybacks with no expiration date. In Q1 alone, Nvidia returned roughly $20 billion through buybacks and dividends. The ex-dividend date is June 3, with payment scheduled for June 26.
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Vera CPU: A $200 Billion Addressable Market
The centerpiece of Huang's keynote is the Vera CPU, part of Nvidia's new Vera-Rubin platform for data centers. For the first time, Nvidia is selling standalone processors, directly challenging Intel and AMD in a market the company pegs at roughly $200 billion. Success would open an entirely new revenue stream beyond graphics and accelerated computing.
Alongside Vera, Nvidia is preparing a PC chip for Windows machines, with Microsoft and Dell reportedly integrating the component into their devices. That move pits Nvidia against Arm-based Qualcomm chips and traditional x86 processors, broadening its competitive arena.
Robotik and the Long View
Nvidia is also placing a heavy bet on robotics and industrial AI, with a specific emphasis on Asia-Pacific. While concrete product announcements are still pending, the topic is expected to occupy a dedicated block in Huang's presentation. The company's five-layer approach — spanning energy to applications — aims to show how AI will roll out across data centers, physical AI, and AI agent systems.
Guidance Beats, China Remains a Wild Card
For the current quarter, Nvidia guided $91.0 billion in revenue (plus or minus 2%), well above the consensus estimate of $86.84 billion. Gross margin is expected at roughly 74.9% under GAAP and about 75.0% on a non-GAAP basis. Management stressed that the guidance excludes data center compute revenue from China — a notable gap given that Hopper shipments to the region brought in $4.6 billion in the year-ago period. Any easing of export restrictions would thus provide additional upside, not a baseline assumption.
On the supply side, Nvidia is addressing bottlenecks beyond silicon. Partner Corning plans to tenfold its U.S. capacity for optical connection technology and boost fiber production by more than 50%. Three new plants in North Carolina and Texas will create over 3,000 jobs, underscoring that infrastructure is as critical as chips.
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Risks and the Multi-Trillion Dollar Horizon
The bullish narrative comes with caveats. Risks include a potential pause in AI infrastructure spending, intensifying competition from AMD, tight HBM memory supply, and persistent U.S. export curbs on China. Yet Nvidia's long-term vision remains expansive: the company expects data center spending to surpass $1 trillion by 2027 and reach $3 trillion to $4 trillion by 2030.
For now, Computex provides the next short-term catalyst. If Huang can translate the Vera CPU and PC chip announcements into credible demand pathways, the stock's recent slide may prove a buying opportunity rather than a trend reversal. The next quarterly report is due in August, but the market's attention is squarely on Taipei this week.
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