US tech giant Nvidia has announced record quarterly profit and revenue amid explosive demand for its advanced artificial intelligence (AI) chips.

The company said profit soared to $58.3 billion for the February-April period, up 37 percent from the previous quarter and more than 200 percent year-on-year. Revenue jumped to $81.6 billion, up 20 percent from the prior quarter and 85 percent compared with the same period in 2025.

Nvidia forecast revenue for the current quarter to hit $91 billion, exceeding most analysts' estimates. The data-center business was the main growth driver, with quarterly revenue surging 92 percent year-on-year to $75.2 billion. The hardware unit brought in $6.4 billion, up 29 percent from the previous year.

As a sweetener for shareholders, the world's most valuable company said it would buy back an additional $80 billion in shares and raise its quarterly cash dividend from $0.01 a share to $0.25 per share.

Nvidia CEO Jensen Huang hailed the results as proof of AI's growing utility. "Demand has gone parabolic," Huang said on a conference call. "The reason is simple. Agentic AI has arrived."

Despite beating analysts' expectations, the market response was muted. Nvidia shares fell nearly 1.3 percent in after-hours trading, reflecting sky-high expectations. Analysts noted that while fundamentals remain strong, the bar for outperformance has risen dramatically.

"Expectations are very high, and when a company like Nvidia has been doing as well as it has for so long, it takes a lot for people to get excited," said Jay Goldberg of Seaport Research. William Rhind of GraniteShares added that the dividend hike and buyback signal a company with "more cash than it can possibly redeploy into the business."

Source: www.aljazeera.com