Nvidia is betting big on Israel even as its stock struggles to hold its post-earnings ground. The chipmaker has signed a ten-year lease worth 230 million shekels for an 11-story building in Yokneam’s Ofer Park, adding 29,000 square meters of floor space to bring its total presence in the park to 67,000 square meters. At the same time, construction is underway on a new headquarters in Kiryat Tivon, sitting on a 160,000-square-meter plot. These moves build on the 2019 acquisition of Mellanox, which cost $6.9 billion, and underscore a long-term confidence that the market hasn’t fully shared.
That confidence clashes with a stock that has fallen in four consecutive quarters after earnings. The latest results—for the first quarter of fiscal 2027—were spectacular by any measure: revenue hit $81.6 billion, crushing the Wall Street consensus of $79.2 billion, and earnings per share came in at $1.87 versus the expected $1.78. Yet the share price remains under pressure. It recently traded at around €186, roughly 7.4% below its all-time high from May, with a relative strength index of 39.5—a reading that typically signals oversold conditions. Technical resistance sits at about $221, and a confirmed breakout above that level would be needed to reignite momentum.
The data center business remains the engine room. Segment revenue doubled to $75.2 billion, accounting for 92% of total sales. Hyperscaler customers alone contributed $37.9 billion, a 115% increase, while gross margins widened to 75.0% from 60.8% a year earlier. For the current quarter, Nvidia guided for $91 billion in revenue, well ahead of the $86.8 billion analysts had penciled in. Notably, that forecast excludes any contributions from China data center sales.
Cash generation has been extraordinary. Free cash flow reached $48.6 billion in the quarter, nearly double the year-ago figure, and operating cash flow hit $50.3 billion. The company is putting that money to use: it hiked its quarterly dividend from $0.01 to $0.25 per share—a 25-fold increase—payable on June 26 to shareholders of record on June 4. An $80 billion share buyback program also remains in place. Supply commitments on the books total $95.2 billion, providing a solid base for the guidance.
Should investors sell immediately? Or is it worth buying Nvidia?
Analysts remain broadly bullish. Bank of America continues to call Nvidia a top pick among AI chip stocks, with Vivek Arya pointing to a server CPU market that could expand from roughly $43 billion in 2026 to $125 billion by 2030, fueled by the rise of agentic AI systems that demand more compute on the CPU side. Nvidia plans to launch its Vera CPU platform alongside the Vera Rubin AI systems in the second half of 2026. Rothschild & Co Redburn maintains a buy rating with a $300 price target, and 48 analysts overall rate the stock a buy, many citing the Vera Rubin ramp as a concrete catalyst.
On the technology front, CEO Jensen Huang has drawn a clear line. SRAM-based inference accelerators such as LPX, he argues, are niche products that serve less than 20% of the total AI market because they suffer from throughput limitations, despite offering low latency and high token rates. He is instead betting on the flexibility of GPU architectures to capture the broad generative AI wave—and on “agentic AI” as the next major demand driver for enterprise.
The immediate catalyst for the stock is Jensen Huang’s keynote at Computex in Taipei on June 1 at 11 a.m. local time, streamed live. That will be followed by GTC Taipei from June 2 to 4, featuring technical sessions on physical AI, AI factories, and agentic systems. With the stock already 14 quarters into a sequential revenue growth streak, investors are hoping the keynote will provide the spark that the earnings report did not. Whether it does should become clear when trading resumes on June 2.
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