Nvidia's Q1 Results Boost Indian IT Stocks, Netweb and E2E Networks See Up to 4.5% Gain
Nvidia Beats Estimates, Boosts Indian AI Stocks
Shares of Indian AI stocks, including Netweb Technologies and E2E Networks, rose significantly on May 21 after the AI giant Nvidia beat analysts' estimates with its Q1 results and forecast.
In its quarterly report, Nvidia predicted sales in the three months ending in July to be approximately $91 billion, surpassing the average estimate of $87 billion. Analysts' projections ranged as high as $96 billion, according to data compiled by Bloomberg.
Nvidia is the leading seller of AI accelerators, chips used to develop artificial intelligence models. The company's data center spending, its primary source of revenue, continues to show no signs of slowing down. Hyperscalers plan to spend a combined total of roughly $725 billion on AI this year. Based on Nvidia's latest results, revenue from those companies continues to outpace other sources.
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As of 9:40 am on May 21, Netweb shares were trading 3.6% higher at Rs 3,980 apiece, while those of E2E Networks climbed 2% to Rs 3,393.8 apiece.
Netweb has transitioned into building high-end supercomputers utilizing the NVIDIA Grace Blackwell platform. Its standard configuration includes the Tyrone systems built on the Nvidia GB200 NVL4 architecture, linking 4 Blackwell GPUs and 2 Grace CPUs via high-speed NVLink technology.
In late 2025, Netweb secured a massive Rs 1,734 crore contract to supply AI servers based on NVIDIA's Blackwell architecture to a global technology provider, significantly expanding its order book visibility through financial year 2027.
Nvidia's all-important data center unit generated revenue of $75.2 billion, compared to an estimate of $73.5 billion. Networking, part of the data center division, delivered $14.8 billion in sales, versus an estimate of $12.7 billion.
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| Company | Q1 Revenue Estimate | Actual Q1 Revenue |
|---|---|---|
| Nvidia | $73.5 billion | $75.2 billion |
| Networking (Data Center Division) | $12.7 billion | $14.8 billion |
E2E Networks Ltd is an Indian cloud infrastructure company that serves as a key strategic partner for NVIDIA's AI-first hyperscaler expansion in India. The partnership focuses on providing localized, high-performance GPU cloud computing capabilities to support the Indian government's IndiaAI Mission.
Netweb is expected to receive $20 billion in CPU revenue this year, which would make it the world's largest supplier.
Investor Takeaway
Investors should consider the potential impact of Nvidia's Q1 results on Indian IT stocks.
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