Nvidia reported fiscal Q1 revenue of $81.6 billion, up 85% year-over-year, beating the Street's $79.2B estimate, with EPS of $1.87 versus the $1.78 consensus. The board approved an $80 billion share repurchase program and hiked the quarterly dividend from $0.01 to $0.25 — a 25x increase. Despite the beat, shares slipped about 2% on Thursday as forward guidance didn't blow past already sky-high expectations, and the stock is trading around $218 today.
The S&P 500 rose 0.7% at midday and the Nasdaq 100 added 0.9%, putting the benchmark on pace for its longest winning streak since 2023. AI stocks are doing virtually all the heavy lifting — strip them out and the market has gone essentially nowhere since February. The VIX is hovering near its lowest level since early February heading into the Memorial Day weekend.
Goldman strategist Ben Snider flagged that just 10 stocks — 2% of the S&P 500 — have supplied roughly 78% of the index's year-to-date return. Nvidia alone, at 9% index weight, contributed 20% of the entire YTD gain. The momentum ETF SPMO has ripped 30% in seven weeks, the strongest surge since its 2016 launch. Goldman notes that four comparable episodes since 1980 were followed by median flat-to-negative returns over the next one to six months.
Micron continues its face-melting 2026 run, up 154% year-to-date and recently crossing the $700 billion market cap threshold. The stock closed around $762 on Wednesday, up 4.1% on the session alone. HBM demand from AI accelerator builds is driving a 196% revenue jump in Q2 2026. Deutsche Bank raised its price target to $1,000, and analysts broadly see more upside ahead.
Evercore ISI analyst Mark Lipacis lifted his Broadcom price target to $582 from $490, the highest on Wall Street, and maintained Outperform. CEO Hock Tan disclosed "line of sight" to exceeding $100 billion in AI chip revenue by 2027, with the XPU franchise now spanning six hyperscale customers including Google, Meta, Anthropic, and OpenAI. The stock is trading around $413.
CrowdStrike notched its eighth straight intraday record, trading above $665 and putting its market cap near $166 billion. KeyBanc raised its price target to $700 from $525, citing strong channel feedback on the new Mythos AI-security product and the Frontier AI Readiness service. Barclays separately lifted to $650. The stock has been a standout even against chip names this month.
Buried in Nvidia's earnings call was a potentially transformative disclosure: the Vera CPU, purpose-built for agentic AI, opens a brand-new $200 billion total addressable market in edge computing that Nvidia has never addressed before. Edge computing revenue hit $6.4 billion in Q1, up 29% YoY. The TAM spans PCs, robotics, automotive, AI-RAN base stations, and workstations — a second growth vector beyond data centers.
The First Trust Nasdaq Cybersecurity ETF (CIBR) has gained approximately 25% in May alone, outpacing both the semiconductor ETF (SOXX) and software ETF (IGV). Palo Alto Networks, Fortinet, Datadog, F5, and Cisco are all hitting records. The rally has added tens of billions in combined market cap across the sector, driven by rising AI-related threat vectors and enterprise spending.
Super Micro shares jumped roughly 10% this week, riding Nvidia's earnings momentum and strong fiscal Q3 results showing revenue up 123% YoY to $10.2 billion. However, a DOJ indictment alleging $2.5 billion in illegal AI server exports to China hangs over the stock, with the lead plaintiff deadline in the securities class action set for Monday, May 26. Three individuals — including co-founder Yih-Shyan Liaw — have been charged.
