28/05/2026
Nvidia earnings – excellent but not enough?
Last week was a busy time for markets.
In the US, markets delivered further gains. The S&P 500 rose for the eighth consecutive week. By style, small-cap and value outperformed growth and large-cap.
Chip maker Nvidia, the world’s most valuable company, reported another bumper set of results for the first quarter. Compared to the year before, sales rose by 85%, while net earnings increased threefold. In both cases, results were way ahead of expectations and confirmed high demand for data centres and AI.
Historically, Nvidia’s earnings results have dominated much of the news flow and helped set investor sentiment. Yet, the past few quarters have shown how difficult it has become for the company to wow investors sufficiently to generate a positive share price reaction. Nvidia’s share price eased after results, though it remains about 20% higher year-to-date.
Longer term, some analysts point to Nvidia’s extremely high (70%+) gross profit margins. The rapid roll-out of lower cost AI chips by competitors may not be a direct threat to Nvidia. However, it is likely to keep investors wondering how long it will be able to maintain such high margins. #
Find more: https://www.dwjwealth.co.uk/weekwatch-26-05-2026