Nvidia Continues to Exceed Expectations with Record Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Fool
- Record Revenue: Nvidia reported a record revenue of $81.6 billion for fiscal Q1 2027, representing an 85% year-over-year increase and marking 14 consecutive quarters of revenue growth, highlighting its robust performance and sustained demand in the AI sector.
- Surge in Data Center Revenue: Data center revenue, which now constitutes the bulk of Nvidia's earnings, rose 92% year-over-year to $75.2 billion, indicating the company's leadership in cloud computing and AI infrastructure, further solidifying its market share.
- High Profit Margins Maintained: Nvidia's recent gross margin of 74.9% demonstrates its ability to maintain efficient cost control and profitability while experiencing rapid growth, enhancing investor confidence in its future prospects.
- Analysts Remain Bullish: Despite market skepticism regarding Nvidia's market cap, 52 out of 54 analysts rate the stock as a buy, with an average price target of $299, indicating a potential 35% upside from current levels and reflecting optimism about its future performance.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Profit Increase: Non-GAAP earnings per share surged 140% year-over-year to $1.87, driven by revenue growth and margin expansion, indicating a substantial enhancement in the company's profitability within the AI sector, further solidifying its market leadership.
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