TLDR
- Nvidia delivered Q1 FY2027 revenue of $81.6 billion, representing an 85% year-over-year increase and surpassing the $78.7 billion estimate
- Earnings per share (adjusted) reached $1.87, topping Wall Street’s $1.75 projection
- Ben Reitzes of Melius raised his price target to $400 from $380, establishing a new Street-high with a Buy rating maintained
- Stifel increased its target to $282 from $250, highlighting Nvidia’s Vera CPU platform as representing a $200 billion additional market opportunity
- Q2 revenue guidance came in at approximately $91 billion, exceeding analyst forecasts, with adjusted gross margin projected at 75%
Shares of Nvidia climbed in Wednesday’s pre-market session after the artificial intelligence chip powerhouse reported quarterly results that handily beat Wall Street expectations.
The company posted $81.6 billion in revenue, marking an 85% surge from the same period last year and topping the Street’s $78.7 billion estimate. Adjusted earnings per share of $1.87 exceeded the consensus forecast of $1.75.
Pre-market activity showed the stock trading near $223.47, representing an approximate 1.30% gain.
Looking ahead to Q2, Nvidia projected revenue of roughly $91 billion, surpassing analyst expectations. The company also guided for a 75% adjusted gross margin and $8.3 billion in operating expenses, both above consensus estimates.
In response to the quarterly print, Ben Reitzes from Melius Research elevated his price target to $400 — establishing a new Wall Street high — from the previous $380, while reaffirming his Buy recommendation.
Reitzes noted the results challenge the narrative that Nvidia’s expansion depends solely on hyperscaler investments in AI infrastructure.
Diversification Beyond Hyperscale Customers
The analyst highlighted Nvidia’s revamped reporting structure as a significant development. The chipmaker now organizes its business across three divisions: Hyperscale, ACIE, and Edge Computing.
According to Reitzes, this reorganization demonstrates that Nvidia’s AI momentum is extending into enterprise AI applications, industrial AI, robotics, automotive technology, and edge computing — sectors that typically experience faster expansion than conventional cloud infrastructure spending.
When excluding China from the equation, Nvidia’s data center revenue climbed 118% year-over-year during Q1. Company leadership indicated expectations for another quarter exceeding 100% growth on the same basis.
Reitzes also emphasized Nvidia’s comprehensive AI platform — encompassing GPUs, CPUs, networking components, storage solutions, and memory — as providing a sustainable competitive advantage.
Vera CPU Platform and Future Prospects
Stifel likewise upgraded its price target following the earnings release, elevating it from $250 to $282 while keeping its Buy rating intact.
The firm unveiled fiscal year 2029 projections alongside its target increase. Stifel drew attention to Nvidia’s forthcoming Vera CPU platform as providing incremental revenue potential of $20 billion and access to a total addressable market worth $200 billion.
According to Stifel’s analysis, Nvidia participates in markets representing a combined addressable opportunity surpassing $100 billion as 2025 concludes, with long-term potential that could exceed $1 trillion.
The firm’s near-term growth thesis focuses on high-performance computing, hyperscale and cloud data centers, plus enterprise and edge computing applications.
Reitzes independently identified the Vera Rubin systems as an additional catalyst for future growth as AI workloads continue expanding in both scale and complexity.
Nvidia currently maintains a gross profit margin of 71%, while the stock has generated a 70% return over the trailing twelve months, per InvestingPro data.
Across Wall Street, the consensus recommendation from 40 Buy ratings, one Hold, and one Sell positions Nvidia as a Strong Buy. The average 12-month price target stands at $286.33.
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