Key Takeaways
- Nvidia delivered Q1 FY27 earnings per share of $1.87, surpassing analyst expectations of $1.76, while revenue reached $81.62 billion — representing an 85.2% year-over-year increase
- Stifel upgraded its NVDA price target to $282, and Mizuho increased its target to $300, with both firms maintaining Buy recommendations
- The company unveiled an $80 billion stock repurchase authorization and significantly increased its quarterly dividend from $0.01 to $0.25 per share
- Wall Street consensus remains a Strong Buy, with average price targets around $304, suggesting approximately 43% potential upside from current trading levels
- While results exceeded expectations, NVDA stock has shown limited post-earnings momentum, with some concerns about elevated valuation and a cautionary alert from Michael Burry
Nvidia unveiled its fiscal 2027 first-quarter financial results on May 20, delivering performance that exceeded Wall Street projections across key metrics. The company generated $81.62 billion in revenue, surpassing the $78.42 billion consensus estimate and representing an impressive 85.2% growth compared to the prior-year period. Earnings per share reached $1.87, comfortably ahead of the $1.76 analyst forecast.
NVDA stock began Wednesday’s session at $214.86 and has climbed approximately 15% since the start of the year. Over the past twelve months, shares have traded within a range of $132.92 to $236.54.
Despite the impressive financial performance, the stock’s response was relatively subdued. Market participants continue monitoring whether the post-announcement consolidation will develop into a more substantial correction.
Stifel’s Ruben Roy maintained his Buy recommendation while increasing his price objective to $282 from $250. He highlighted management’s discussion regarding the Vera CPU platform, which is expected to unlock a new $200 billion addressable market opportunity, with approximately $20 billion in standalone CPU revenue anticipated in FY27.
Roy also emphasized robust GPU pricing trends. Cloud rental pricing for H100 units increased 20% year-to-date, while A100 pricing in the cloud segment rose 15%. He characterized this as evidence of sustained demand that extends beyond typical depreciation patterns.
Nvidia’s networking segment delivered particularly impressive results. Revenue in this division skyrocketed 199% year-over-year to $14.8 billion. Roy characterized Spectrum-X as having established itself as the revenue leader in the AI-Ethernet category.
Mizuho Establishes $300 Price Objective
Vijay Rakesh from Mizuho elevated his price target to $300 from $275, maintaining his Buy recommendation. He anticipates Nvidia will continue as the dominant merchant AI-GPU provider and projects the stock could trade at approximately 25x FY28 estimated earnings.
Rakesh highlighted that the Vera Rubin platform remains on schedule for an October quarter debut. He also referenced Nvidia’s forecast that the AI infrastructure market will expand to $3 to $4 trillion by the end of the decade.
Physical AI revenue exceeded $9 billion over the past 12 months, fueled by expanding automotive collaborations with companies including BYD, Uber, Geely, and Hyundai.
Among Wall Street analysts, 38 have issued Buy ratings on NVDA, with one Hold rating and one Sell rating. The consensus price target sits at approximately $304, implying roughly 43% upside potential from current price levels. Melius Research holds the Street’s most bullish view with a $400 target.
Share Repurchase Authorization and Dividend Enhancement
Nvidia’s board of directors approved an $80 billion stock buyback program, supplementing the $39 billion that remained under previous authorizations. CFO Colette Kress indicated the company plans to distribute approximately 50% of free cash flow to shareholders throughout FY27.
The quarterly dividend received a substantial increase — rising from $0.01 per share to $0.25 per share. Shareholders of record as of June 4 will receive the dividend payment on June 26.
CX Institutional expanded its NVDA position by 1.4% during the fourth quarter, bringing total holdings to 300,575 shares valued at approximately $56.1 million. Institutional investors collectively control 65.27% of outstanding shares.
Not all market observers share the optimistic outlook. Michael Burry recently issued a public cautionary statement regarding the stock, suggesting it could experience a significant downturn. He cited excessive AI enthusiasm and overcrowded momentum positioning as potential vulnerability factors.
The stock’s 50-day moving average currently stands at $197.43, while the 200-day moving average is positioned at $189.19. The company’s market capitalization is approximately $5.20 trillion.
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