Nvidia bets on new data center chips for growth as sales outlook tops estimates - Reuters

<a href="https://news.google.com/rss/articles/CBMi1AFBVV95cUxQMTFWZ3NKWnlKVTRtaWVfMnhGSjZtd014djQxZEhPdElOeDBSdXBEVEwyMVZaNlpRZDJTdDM2dm5xMXhhZzM2QmVHV1RZVzRQNUdrTU1NX2VRQmc3dU5tVzhjYXJrbHBqOXVTUWpJTGR2V2QyZkVLRVlYSFE0MzFIaHk5OU9nazVlUnZYaXBrUTktVDVFRkJkN0JxaDE2ZW5lNlhtOE5nMDVHREpoTFlzeGpraEl5VnBBZ2RheUd3QnZWVUh0MVhTZDhCRWJDYzVuWXVmVA?oc=5" target="_blank">Nvidia bets on new data center chips for growth as sales outlook tops estimates</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Nvidia reported exceptional first-quarter results, far exceeding Wall Street expectations due to soaring demand for its AI chips. The company posted $58.32 billion in net income, a dramatic rise from $18.78 billion a year ago. Revenue also surged 85% to $81.62 billion, beating the $78.91 billion forecast.

As of May 2026, Nvidia, once the dominant force in the chip market, is now being outshined by emerging 'cool kids' in the semiconductor industry. Despite its impressive 18.3% year-to-date gain and standing as the largest U.S. company by market capitalization at $5.4 trillion, Nvidia is lagging behind other chip stocks that have seen even more dramatic rises. Notably, Intel has surged 200% so far this year, its strongest performance since 1975.

Nvidia plans to address the growing energy demands of AI by deploying around 25 small data centers adjacent to power substations across the U.S. This initiative, set to launch later this year, isn’t aimed at reducing overall energy consumption but rather improving load balancing in the power grid. These mini data centers will ramp up GPU compute in areas with spare power capacity while scaling back in locations under heavier electrical loads.