Anant Raj, E2E Networks, Netweb Tech: AI-linked data centre stocks jump over 4.5% on Nvidia's robust Q1 results

In what CEO Jensen Huang described as an “extraordinary” quarter, Nvidia beat Street estimates and projected second-quarter revenue above analysts’ expectations.

The world’s most valuable company also announced an $80 billion share buyback along with a dividend hike, signalling confidence in sustained growth momentum.

During the earnings call, Huang reassured investors that Nvidia’s growth trajectory remains strong, backed by rising AI adoption across industries and a diversified customer base. The CEO also highlighted that the company’s next-generation products could help it surpass the $1 trillion revenue opportunity it has projected for its flagship AI chips.

“We should be growing faster than hyperscale capex,” Huang said.

Nvidia’s earnings are closely tracked globally as the company’s GPUs power a majority of AI workloads and large-scale data centres worldwide. Strong results from the chipmaker are often seen as a positive signal for the broader AI and data centre ecosystem, including Indian companies linked to AI infrastructure, GPU cloud services, servers, and data centres.

As a result, stocks such as Anant Raj, E2E Networks, and Netweb Technologies could see heightened investor interest, given their exposure to India’s fast-growing AI and digital infrastructure space.

Here is how stocks were faring in the early trade

Shares of Netweb Technologies India were trading 4.59% higher at ₹4,018.00 apiece on the NSE, while E2E Networks shares were up 2% at ₹3,397.70. Anant Raj shares were trading 1.49% higher at ₹496 apiece.

Despite the earnings beat, Nvidia shares slipped 1.6% in extended trading, suggesting investors remain cautious about intensifying competition and lofty growth expectations in the AI semiconductor market.

Data centre revenue for the three-month period ending April 26 totaled $75.2billon, representing yearly and quarterly increases of 92% and 21%, respectively.

Key details

Nvidia said it earned $58.32 billion, or $2.39 per share, in the February-April period, up from $18.78 billion, or 76 cents per share, in the same period a year earlier. Excluding one-time items, Nvidia earned $1.76 per share.

Revenue jumped 85% to $81.62 billion from $44.01 billion.

According to a report by AP, analysts, on average, were expecting earnings of $1.75 per share and revenue of $78.91 billion, according to a poll by FactSet. Nvidia’s results have exceeded the analyst projections that shape investors’ perceptions since Nvidia’s high-end chips emerged as AI’s best building blocks three years ago.

“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” said CEO Jensen Huang in a statement.

Along with higher profit and revenue, however, Nvidia’s operating expenses increased by 49% to $7.75 billion.

For the current quarter, Nvidia forecasts revenue of about $91 billion. Analysts are forecasting $87.29 billion, the report added.

Other stocks in focus

Apart from Anant Raj, E2E Networks, and Netweb Technologies, shares of AI- and data centre-linked companies such as Reliance Industries (RIL), Infosys, Tata Consultancy Services, Wipro, Tech Mahindra, and Larsen & Toubro could also remain in focus after strong earnings from Nvidia.

These companies have either partnered with Nvidia for AI infrastructure, cloud computing, enterprise AI solutions, or are expanding their exposure to the fast-growing data centre and AI ecosystem.