Shares of Nvidia (NVDA) fell in extended trading on Wednesday after the artificial intelligence chipmaker issued a quarterly revenue forecast that, while above Wall Street expectations, failed to fully satisfy investors accustomed to the company significantly outperforming estimates.

Nvidia’s earnings beat showed AI demand is still booming. Its buyback plan is showing how much cash that boom is throwing off. The company returned about $20 billion to shareholders in the quarter and authorized another $80 billion in buybacks.

Nvidia's conference call with analysts is scheduled for 5 p.m. ET, where CEO Jensen Huang will talk about the results.

Nvidia is expected to deliver another blockbuster earnings report, but a shift in how artificial intelligence is used is raising doubts on how long its dominance in AI chips can last.

The AI trade has had favorites. NVIDIA, Microsoft, Alphabet, and Meta have carried the narrative, while two enterprise tech giants have quietly compounded earnings and built backlogs that few retail investors are talking about.

The results for the first quarter of fiscal 2027, which ended on April 26, marked an 85% increase from the same period last year and a 20% rise from the previous quarter.

Q4 FY2026 earnings call in late February this year, the company’s VP of Investor Relations said “Physical AI is here,” something that the company’s financials are also corroborating. That segment has already posted over $6 billion in annual revenue and is rising fast.

Nvidia (NASDAQ:NVDA) has been on quite the investment spree in the past year, and while much of the AI bets and partnerships have begun to bear fruit after the latest run in AI-related names, questions linger as to how all these “circular” bets change the risk/reward profile of the world’s largest company.

Singapore has announced a new Nvidia research center and its first testbed to research, test and deploy physical AI, along with industry leaders.

Nvidia Corp. Chief Executive Officer Jensen Huang, speaking days after he joined President Donald Trump’s summit in China, said he expects Chinese authorities to eventually allow the import of artificial intelligence chips from the US.