From Taipei to Tel Aviv: Nvidia Breaks Ground on a $118 Billion Show of Confidence
26.05.2026 - 11:42:29 | boerse-global.de
Jensen Huang has a simple message for investors and partners alike: Nvidia isn't just riding the AI wave — it’s building the shore. The company's chief executive touched down in Taiwan this week for high-stakes meetings with TSMC, Quanta Computer, and other key suppliers, while simultaneously deepening its footprint in Israel. The twin infrastructure pushes, coupled with a record capital return program, lay bare a strategy that looks well beyond any single quarter's earnings.
The centerpiece of Huang's Taiwan trip is the groundbreaking for "Nvidia Constellation," a new headquarters in the Beitou-Shilin Technology Park scheduled for a May 28 ceremony. That evening, a so-called "billion-dollar dinner" will bring together Hon Hai (Foxconn), Quanta, MediaTek, and other major partners. On June 1, Huang takes the stage at GTC Taipei to detail how these assets feed into the next computing cycle.
Meanwhile, in Israel, Nvidia has signed a ten-year lease on an 11-story, 29,000-square-meter complex in Yokneam's Ofer Park, expanding its local presence to 67,000 square meters. Beyond that, a 160,000-square-meter site in Kiryat Tiwon will host a new headquarters, with construction starting in 2026 and occupancy expected in 2028. Israel houses the networking and AI research teams acquired through the 2019 Mellanox deal — a unit that is proving to be anything but an afterthought.
The hardware that will fill these sites is already on the horizon. Nvidia's "Vera Rubin" architecture, unveiled at CES 2026, packs 72 GPUs and 36 processors per module and promises five times the computational power of its predecessor. Volume shipments are slated for late this year. The ramp-up also includes Vera CPUs based on Arm architecture — CFO Colette Kress confirmed that every major hyperscaler is deploying them, with Nvidia expecting nearly $20 billion in CPU revenue this year alone, vaulting it into the top tier of datacenter chip suppliers.
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That hardware is already minting cash at a staggering clip. In the first quarter of fiscal 2027, revenue hit $81.6 billion — a record and an 85% year-over-year jump. The datacenter segment alone accounted for $75.2 billion, up 92%, and within it, networking revenue surged 199% to $14.8 billion as hyperscalers expand AI clusters. Net profit reached $58.3 billion, while free cash flow climbed to roughly $48.6 billion.
With that kind of financial firepower, Nvidia has unleashed its most aggressive capital return program ever. The board raised the quarterly dividend from $0.01 to $0.25 per share — a 2,400% increase — approved on May 18, 2026. On its own, that works out to about $24.3 billion annually, a fraction of the $58.3 billion net profit Nvidia posted last quarter. More consequential is a new $80 billion share buyback authorization with no expiration, giving the company a total repurchase capacity of $118 billion when combined with leftover authority from the prior program. Already, $20 billion was returned to shareholders in Q1, the largest single-quarter total in company history.
For the current quarter, management guided revenue of roughly $91 billion, well ahead of the $86.8 billion consensus. The implied year-over-year growth of about 95% excludes any contribution from China, a market that remains off the table. Gross margin is expected around 75%. Adjusted earnings per share came in at $1.87 for Q1.
Despite the blowout numbers, the stock has not caught fire. Shares traded at 188.90 euros on Tuesday in Frankfurt, down about 6% from their 52-week high of 201 euros. The stock is up roughly 17% year to date, but the pattern of muted post-earnings reactions has now persisted for four consecutive quarters. Nvidia has failed to advance on the day after any quarterly report since spring 2025 — and yet, over that same stretch, it has still climbed more than 60%.
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Analysts remain overwhelmingly bullish. Fifty-two of 54 analysts covering the stock rate it a buy, with an average price target near $300. Perhaps more striking, the trailing P/E multiple stands at around 25 — a far cry from the five-year median of 61.3, suggesting the market is still pricing in execution risk even as the company delivers record results.
The next checkpoint comes in the second quarter, when investors will see whether Nvidia can hit that $91 billion target — and whether the China question eventually re-enters the equation. For now, Jensen Huang is betting that the physical infrastructure rising in Taiwan and Israel will keep the answer firmly in the affirmative.
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