TLDR
- Nvidia stock jumped 17% in June following a strong Q1 2026 earnings report showing 69% revenue growth
- Mizuho raised its price target to $185 from $170, maintaining an Outperform rating on the stock
- Data center segment drove growth with 73% increase in sales and 100 new Nvidia-powered data centers launched
- Company released two new AI technologies: Blackwell Ultra and Dynamo accelerators
- Fiscal 2026 revenue estimates increased from $195 billion to $202 billion due to improved GPU supply
Nvidia stock surged 17% in June after the company delivered outstanding first-quarter results that beat investor expectations. The chipmaker reported revenue growth of 69% year-over-year for its fiscal 2026 first quarter, which ended April 27.
The company’s net income jumped from $0.60 per share last year to $0.76 this year. Wall Street analysts took notice of the strong performance and updated their forecasts accordingly.
Mizuho raised its price target on Nvidia to $185 from $170 while maintaining an Outperform rating. The firm cited strong data center outlook and improved GPU supply as key factors behind the upgrade.
The investment bank kept its July quarter revenue estimate at $45.0 billion with earnings per share projected at $0.98. Data center revenues are expected to reach approximately $41 billion, representing a 5% quarter-over-quarter increase.
Data Center Growth Drives Performance
The data center segment proved to be the star performer with a 73% increase in sales. This growth reflects the massive demand for AI infrastructure as companies build out their capabilities.
Nvidia powered 100 new data centers in the first quarter, double the number from last year. These facilities are also using twice as many chips compared to the previous year, showing the scaling demand for AI processing power.
The company released two new AI technologies during the quarter: Blackwell Ultra and Dynamo. These products target the growing market for advanced AI acceleration.
Major tech companies like Amazon and Meta Platforms continue to rely on Nvidia’s premium products. The company maintains roughly 95% of the AI semiconductor market share.
Analyst Outlook Improves
Mizuho raised its fiscal 2026 estimates from $195 billion in revenue to $202 billion. The firm also increased its earnings per share forecast from $4.16 to $4.38.
The upgrade reflects modestly improved GPU supply and the earlier-than-expected introduction of GB300 and air-cooled Rubin products. These factors are expected to serve as tailwinds for the company.
Wall Street sees earnings per share growing from $2.99 to $4.29 this year and reaching $5.76 next year. This represents a 39% compound annual growth rate.
Nvidia stock trades at a forward one-year price-to-earnings ratio of 27. The company’s updated price target represents 32.7 times its fiscal 2027 price-to-earnings estimate.
Strong demand for GB200 products is anticipated in the second half of 2025 ahead of GB300 ramps. The company is also working on a new “B40” accelerator for the Chinese market, though shipments are currently blocked.
The gaming and automotive segments continue to show robust growth. While AI made Nvidia a household name, the company maintains a diversified business model across multiple sectors.
Nvidia’s collaboration with various companies continues to expand its reach. The Rubin product line is expected to drive additional growth into 2026
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