Nvidia Delivers a Record Quarter and an $80B Buyback — So Why Did the Stock Fall?

The arithmetic of Nvidia’s first fiscal quarter of 2027 reads like a tech fairy tale: revenue up 85% to $81.6 billion, a data-center business that surged 92% to $75.2 billion, a dividend hike from a penny to a quarter per share, and a fresh $80 billion buyback program. Yet when the numbers landed on May 20, investors barely stirred. By Friday, the stock had slipped another 1.4% to €181.40 in Frankfurt, leaving it nearly 10% below its 52-week high of €201.05 and down about 2.2% on the week.

The disconnect has a name among analysts: the “flat-reaction paradox.” Expectations had been so stratospheric that even a record-breaking quarter failed to ignite fresh buying. Rising bond yields added a layer of pressure, compressing valuations across high-growth tech names. The stock’s relative strength index now sits at 36.4, a technically oversold zone that historically draws bargain hunters.

Jensen Huang, Nvidia’s chief executive, spent the days after the earnings release on a whirlwind tour that spanned geopolitics, product development, and supply-chain pledges — a reminder that the company’s fortunes are shaped as much in boardrooms and trade halls as in chip design labs.

A Balancing Act in Beijing

On May 28, Huang joined the advisory board of Tsinghua University’s School of Economics and Management, a panel chaired by Apple’s Tim Cook and including Elon Musk and Microsoft’s Satya Nadella. The appointment landed at a delicate moment: U.S. export curbs still restrict Nvidia’s most advanced AI chips from reaching Chinese customers, and Huang recently accompanied President Trump on a trip to Beijing. Market observers interpret the Tsinghua role as an effort to maintain academic and diplomatic channels in China even as trade tensions crimp commercial sales.

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$150 Billion for Taiwan and a New Processor

At the Computex Taipei exhibition, Huang announced that Nvidia would boost its annual spending in Taiwan to $150 billion. He also downplayed concerns over Huawei’s technological progress, insisting that TSMC’s lead in 3D packaging remains unthreatened.

The Taipei event is also expected to host a major product reveal. Nvidia and Microsoft posted cryptic coordinates on social media on May 29, pointing to the Taipei Music Center with the slogan “A new era of PC.” Industry reports indicate Nvidia is developing an ARM-based processor, internally code-named N1 or N1X, built on TSMC’s 3-nanometer process and featuring a Blackwell graphics unit with up to 6,144 CUDA cores. The chip would directly challenge Apple’s M5 Pro and Qualcomm’s Snapdragon X2 Elite in the Windows ecosystem. An official announcement is anticipated during Huang’s keynote on June 1.

Meanwhile, the company is restructuring its reporting to focus on two platforms — data center and edge computing — a move designed to highlight true growth drivers and, perhaps, quiet valuation debates.

Insider Activity and Technical Support

Not all signals were bullish. On May 27, director John Dabiri sold 625 shares at $214 each, netting roughly $133,750. The sale was executed under a pre-arranged trading plan established in December 2025. Dabiri still holds 14,163 direct shares.

Chart watchers see next support near $200, with short-term resistance around $215. The stock trades about 13% above its 200-day moving average, suggesting the long-term uptrend remains intact. On the year, Nvidia has gained nearly 49%.

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Analyst consensus remains firmly in the “buy” camp, with average price targets ranging from $305 to $308. Several firms lifted their goals after the earnings: Jefferies to $300, UBS and JPMorgan to $280, CICC Research to $268.30, and Baird to $500 as of May 21, 2026.

The Competitive Horizon

Longer-term uncertainties linger. Hyperscalers such as Google, Meta, and Microsoft are developing in-house AI chips to reduce reliance on Nvidia, while AMD and Intel gradually claw into the market. Nvidia’s response includes the upcoming “Vera Rubin” silicon, which promises to set new benchmarks for AI workloads.

Huang’s multi-front strategy — from record financials and massive shareholder returns to diplomatic bridge-building and aggressive investment in new products and geographies — reflects a company operating at full throttle. Whether that energy will finally translate into a stock rally may become clearer after the next earnings report, when the market once again recalculates its expectations.

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