Key Takeaways
- Nvidia (NVDA) reiterated its massive $1 trillion revenue target for the Blackwell and Rubin architectures through calendar 2027, signaling sustained dominance in the AI infrastructure market.
- The company revealed $20 billion in visibility for standalone CPU revenue this year, positioning itself as a major threat to traditional chipmakers with a $200 billion total addressable market (TAM) for its Vera CPU.
- Nvidia's board authorized a massive $80 billion increase to its share repurchase program, bringing total buyback capacity to over $100 billion alongside a 25x increase in its quarterly dividend.
- SpaceX disclosed plans to deploy orbital AI compute satellites by 2028 and revealed a 1 billion share performance-based grant for Elon Musk as the company moves toward a highly anticipated public offering.
- U.S. equity futures slipped in after-hours trading, with S&P 500 futures down 0.3% and Nasdaq futures falling 0.4% as Nvidia shares experienced a slight dip despite the record-breaking financial results.
Nvidia Solidifies AI Dominance with $1 Trillion Outlook
Nvidia (NVDA) delivered a blockbuster Q1 earnings report, posting record revenue of $81.6 billion, an 85% increase year-over-year. The company’s Data Center segment remains the primary engine of growth, accounting for $75.2 billion of total sales. Despite the record figures, the stock saw a slight post-market dip, dragging down S&P 500 and Nasdaq futures as investors digested the high expectations baked into the current valuation.
Chief Financial Officer Colette Kress confirmed that Nvidia has "full confidence" in hitting its $1 trillion revenue forecast through 2027, driven by the rollout of the Blackwell and Rubin chip architectures. To reward shareholders, the board approved an additional $80 billion in buyback authorization, bringing the total to over $100 billion. The company also signaled a shift toward regular dividend growth, raising its quarterly payout to $0.25 per share.
Vera CPU and the "Niche" SRAM Market
A major highlight of the earnings call was Nvidia's aggressive expansion into the CPU market. The company reported visibility into nearly $20 billion in CPU revenue for the current year. CEO Jensen Huang clarified that this figure reflects standalone CPU sales rather than bundled units, emphasizing that the Vera CPU gives the company access to a new $200 billion TAM.
Huang also addressed the competitive landscape for specialized AI hardware, specifically SRAM-based AI chips. While startups have touted SRAM for its low-latency benefits, Huang expects these designs—including Nvidia's own specialized offerings—to remain "a niche product for some time." He noted that Nvidia will continue to prioritize R&D and supply chain scaling to maintain its lead over hyperscale competitors who are increasingly developing in-house silicon.
SpaceX Eyes 2028 for Orbital AI Compute
In a separate but equally significant development, SpaceX disclosed in its latest filings that it expects to begin deploying orbital AI compute satellites as early as 2028. This move suggests a strategic pivot toward providing space-based processing power for advanced AI models. The disclosure came as part of the paperwork for its looming initial public offering, which also revealed a massive governance milestone.
The SpaceX board approved a grant of 1 billion performance-based Class B restricted shares to Elon Musk on January 13, 2026. The filing noted that locked-up shares may be released early under certain conditions, a detail closely watched by potential IPO investors. SpaceX also revealed a cloud services agreement with Anthropic PBC, which is set to pay the aerospace giant $1.25 billion per month for compute capacity through 2029.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.