Nvidia closed at $211.14 on Friday, down 1.45% for the day and approximately 1.9% for the week, even as major indexes like the Nasdaq Composite and S&P 500 posted gains. The stock's decline highlights the elevated bar investors have set for the leading AI chipmaker following its latest earnings report.
The company is set to unveil the first Windows PCs powered by Nvidia central processing units (CPUs) next week, according to a Reuters report. The announcement is expected at Computex in Taiwan and Microsoft's Build event in San Francisco, with Surface models and devices from other brands such as Dell likely to be showcased.
This move marks Nvidia's expansion into a market long dominated by Intel and AMD. Qualcomm has already introduced Arm-based CPUs for Windows laptops, adding competitive pressure. Nvidia's entry could reshape the PC landscape, offering a new growth avenue beyond its dominant data center business.
Nvidia reported record fiscal first-quarter revenue of $81.6 billion, up 85% year-over-year, with data center sales contributing $75.2 billion. The company guided for second-quarter revenue of $91 billion, plus or minus 2%, and announced an $80 billion increase to its share buyback program. CEO Jensen Huang described the buildout of AI factories as "the largest infrastructure expansion in human history," noting that "demand has gone parabolic."
Bank of America analyst Vivek Arya characterized the results as a "solid beat-and-raise," lifting his price target on Nvidia to $350 from $320. He cautioned, however, about typical post-earnings volatility. The company's second-quarter guidance assumes zero data center compute sales from China, and its filing listed three direct customers accounting for 21%, 17%, and 16% of first-quarter revenue, underscoring concentration risks.
Nvidia CEO Jensen Huang also revealed that the company's annual spending in Taiwan will reach $150 billion, calling the island the "epicenter" of the AI revolution. Nvidia plans to open a Taiwan headquarters with 4,000 staff by 2030, according to Reuters.
Investors will closely watch several events this week: the Windows PC unveiling, Huang's Computex keynote on June 1, and Nvidia's appearance at Bank of America's Global Technology Conference on June 4. The week will test whether Nvidia can sustain its growth narrative and reignite buying interest, or if the stock remains vulnerable to profit-taking after its recent run.
