Nvidia's Datacenter Juggernaut Rolls On, But All Eyes Are Shifting to 6G and Edge Computing
25.05.2026 - 07:42:45 | boerse-global.de
Nvidia delivered a record-shattering quarter, yet the stock remains stuck in a post-earnings rut — and the company is already sketching out its next growth act. While datacenter revenue surged 92% to $75.2 billion in the first fiscal quarter of 2027, management used the IEEE ICC 2026 conference in Glasgow to unveil a parallel narrative around 6G and AI-RAN that could reshape how investors value the business over the long haul.
Total revenue hit $81.6 billion, up 85% year on year, with earnings per share nearly tripling to $1.87. Gross margins expanded to 75%, a level many chipmakers can only dream of. The edge computing segment, which now includes AI-RAN base stations as an official reporting line, chipped in $6.4 billion — a 29% annual gain, though still dwarfed by the datacenter behemoth. Nvidia forecast around $91 billion in second-quarter revenue and disclosed a contract backlog of $1 trillion, extending at least through 2027.
The stock, however, has not caught fire. Shares closed at €185.46, roughly 8% below the 52-week high of €201.05 hit in mid-May. Over the past seven sessions, the equity shed nearly 3%, and the relative strength index has slipped to 39.5, teetering on the edge of oversold territory. Even so, the price remains comfortably above all major moving averages, preserving the medium-term uptrend.
Should investors sell immediately? Or is it worth buying Nvidia?
A big reason for the market's caution lies in China. Datacenter revenue from the country is currently zero. While U.S. authorities have granted licensing approvals for ten Chinese firms — including Alibaba, Tencent and ByteDance — to purchase H200 chips, not a single shipment has gone out. Until those wheels start turning, the China question will hang over any rally.
The telecom push offers a partial answer. At the Glasgow conference, Ronnie Vasishta, Nvidia's senior vice president for telecommunications, laid out a vision for using artificial intelligence across the entire lifecycle of 6G systems. The company has already embedded AI-RAN into its edge platform and announced partnerships with T-Mobile and Nokia to integrate physical AI applications into AI-RAN-ready infrastructure. For investors, this creates a second, verifiable growth track beyond hyperscale datacenters — one that can now be tracked separately in Nvidia's segment reporting.
The financial firepower behind the strategy is unmistakable. The board quadrupled the quarterly dividend to $0.25 per share and authorized an additional $80 billion in share buybacks. Analysts remain overwhelmingly bullish: the consensus price target sits at $295, with the most optimistic forecast reaching $500. A total of 62 analysts rate the stock a "Strong Buy."
The next catalysts are clear. Nvidia's second-quarter report in August will show whether the edge segment can sustain its growth trajectory and whether the telecom strategy is translating into measurable orders. Meanwhile, the licensing situation in China bears watching — any movement on H200 deliveries could quickly change the market's mood. For now, the datacenter machine is humming at full throttle, but the company is betting that 6G and AI-RAN will turn a supporting act into a headliner.
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