Must read: Nvidia, Mitchells & Butlers
ii’s head of investment rounds up the morning’s big news.
21st May 2026 09:28
by Victoria Scholar from interactive investor
Photo: JOSH EDELSON/AFP via Getty Images.
Nvidia
NVIDIA Corp reported first-quarter results which beat expectations – adjusted earnings per share hit $1.87 versus forecasts for $1.76 and revenue hit $81.62 billion (£61 billion) versus consensus at $78.86 billion.
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Its guidance was also strong with Q2 revenue expected to come in around $91 billion, ahead of estimates. Data-centre revenue surged 92% to $75.2 billion in Q1. The chip giant is returning cash to shareholders by raising its dividend from 1 cent to 25 cents and announcing an $80 billion share buyback programme.
This was another undeniably strong quarter for Nvidia. However, shares fell after hours as the bar is very high for the artificial intelligence (AI) bellwether which has made a habit of delivering incredibly impressive results. Plus investors “bought the rumour, sold the fact” as shares had already rallied ahead of earnings.
There are some concerns among Nvidia investors about the growing threat of competition as the data-centre landscape shifts and hyperscalers develop their own chips. On a more positive note, there is a lot of optimism towards its Vera Rubin system, which is expected to outpace Blackwell.
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After several years of stellar stock market outperformance, Nvidia shares had a tough time between November and April, caught up in AI bubble fears and a rotation among investors away from tech towards more traditional sectors. However, since April, shares have been rebounding although Nvidia lagged other chipmakers such as Intel Corp and Advanced Micro Devices Inc in the semiconductor surge.
Nvidia has enjoyed several price target upgrades on the back of earnings including from JP Morgan, Deutsche Bank, Morgan Stanley and Jefferies.
Shares in SoftBank soared 20% overnight after Nvidia’s earnings signally renewed optimism towards AI.
Mitchells and Butlers
Mitchells & Butlers reported first half like-for-like sales growth of 3.3% and adjusted operating profit of £181million, unchanged year-on-year.
However, shares plunged over 8% after the company said it experienced slower sales growth of 1.8% in the second quarter, suggesting momentum is weakening, with concerns being that the pub chain could experience further pressure ahead.
It is facing headwinds on multiple fronts from the weak consumer backdrop and softer discretionary spending to heightened inflationary pressures that are weighing on the hospitality industry. No doubt the sector will be hoping for a boost from improving weather in the summer months ahead as well as the men’s football World Cup.
Shares are down 10% so far this year and 15% over the last 12 months.
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