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NVIDIA Sees Temporary Setback Despite Robust Earnings and Buybacks

Key Takeaways -NVIDIA shares fell to 215.71 after profit-taking pressured the stock below 221.69–222.77 resistance. -Dividend increased from $0.01 to $0.25 and an $80B share repurchase plan was approved, highlighting strong cash returns. -Q1 fiscal 2027 revenue surged 85% YoY to $81.6B, data centre revenue up 92% to $75.2B. -Short-term technical structure remains bearish; key support at 214.56 and 211.15, resistance at 215.84 and 222.77. -Strong AI infrastructure spending continues to support the long-term bull case, despite near-term consolidation. NVIDIA shares retreated to 215.71 after reaching an intraday high of 222.77, as traders booked profits following a strong AI-driven rally. The company recently raised its quarterly dividend from $0.01 to $0.25 and approved an additional $80 billion share buyback plan, highlighting its growing cash-generation capacity. Despite the long-term AI growth story remaining intact, short-term sellers currently control price action below the 221.69–222.77 resistance zone. Profit-Taking Pressure The pullback largely reflects short-term profit-taking after NVIDIA’s rapid gains on strong AI earnings. Q1 fiscal 2027 revenue hit a record $81.6 billion, up 85% YoY, with data centre revenue rising 92% to $75.2 billion. About $20 billion was returned to shareholders through buybacks and dividends. While these fundamentals support the long-term bull case, technical pressure currently dominates near-term price action. Technical Analysis Shares remain below key short-term moving averages. A move above 215.84 would stabilize the stock, while reclaiming 221.69–222.77 is necessary for a stronger bullish signal. On the downside, support sits at 214.56, with further weakness potentially reaching 211.15. The chart indicates a consolidation phase while traders await directional confirmation. Market Outlook NVIDIA continues to be a core AI growth play, driven by structural demand for chips, data centre infrastructure, and cloud computing. Short-term technical pressure may persist until buyers regain momentum. However, the long-term outlook remains positive, supported by robust earnings, strong cash flow, and shareholder-friendly measures. Explore how NVIDIA’s AI growth, dividends, and market positioning influence short-term trading and long-term opportunities in the article below.

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Publication date:

2026-06-04 09:12:17 (GMT)

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