Key Highlights
- Q1 FY2027 revenue reached $81.6 billion, representing an 85% year-over-year increase and surpassing the $78.7 billion consensus forecast
- The company reported adjusted earnings per share of $1.87, topping Wall Street’s $1.75 expectation
- Ben Reitzes of Melius Research elevated his price target to $400 from $380, establishing a new Wall Street high while maintaining his Buy recommendation
- Stifel boosted its price objective to $282 from $250, highlighting the Vera CPU platform’s potential $200 billion market opportunity
- Management projects Q2 revenue of approximately $91 billion with a 75% adjusted gross margin, exceeding analyst forecasts
Shares of Nvidia moved higher during Wednesday’s pre-market session following the semiconductor giant’s impressive Q1 Fiscal 2027 financial results that surpassed Wall Street expectations.
The company reported quarterly revenue of $81.6 billion, marking an 85% year-over-year surge and eclipsing the $78.7 billion analyst consensus estimate. Adjusted earnings per share of $1.87 exceeded the anticipated $1.75.
Pre-market trading showed the stock hovering around $223.47, representing a gain of approximately 1.30%.
Looking ahead to Q2, Nvidia provided revenue guidance of roughly $91 billion, surpassing analyst projections. The company also issued adjusted gross margin guidance of 75% alongside operating expense guidance of $8.3 billion, both beating consensus estimates.
In response to these results, Ben Reitzes from Melius Research increased his price target to $400 from $380, establishing a new high mark on Wall Street while reaffirming his Buy rating.
Reitzes noted that the quarterly performance challenges the narrative that Nvidia’s expansion is solely dependent on hyperscaler investments in AI infrastructure.
Diversification Beyond Hyperscale Customers
The analyst emphasized Nvidia’s revamped reporting framework as a significant development. The organization now divides its operations into three distinct segments: Hyperscale, ACIE, and Edge Computing.
This restructuring signals to Reitzes that Nvidia’s AI expansion is penetrating enterprise artificial intelligence, industrial AI applications, robotics, automotive sectors, and edge computing — all markets characterized by faster growth rates than conventional cloud infrastructure spending.
When excluding China from the calculation, 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 comparative basis.
Reitzes additionally highlighted Nvidia’s comprehensive AI platform ecosystem — encompassing GPUs, CPUs, networking infrastructure, storage solutions, and memory technologies — as a sustainable competitive advantage.
Vera CPU Platform and Future Opportunities
Stifel likewise raised its price target following the quarterly report, advancing from $250 to $282 while preserving its Buy rating.
The investment firm unveiled fiscal year 2029 projections in conjunction with the upgrade. Stifel emphasized that Nvidia’s forthcoming Vera CPU platform presents incremental revenue potential of $20 billion within a total addressable market valued at $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 exceeding $1 trillion.
The firm’s near-term growth projections focus on high-performance computing, hyperscale and cloud data center infrastructure, and enterprise plus edge computing applications.
Reitzes independently identified the Vera Rubin systems as an additional catalyst for future expansion as AI workloads increase in both scale and sophistication.
Currently, Nvidia maintains a gross profit margin of 71% and has generated a 70% stock return over the trailing twelve months, based on InvestingPro data.
The Street’s consensus view includes 40 Buy ratings, one Hold rating, and one Sell rating, resulting in a Strong Buy recommendation for Nvidia. The mean 12-month price target stands at $286.33.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
