Nvidia Reports 73% Revenue Growth in Latest Quarter
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Significant Revenue Growth: Nvidia achieved a remarkable 73% revenue growth in its latest quarter, demonstrating strong market performance; however, investor caution regarding future growth led to a stock price decline of approximately 5%.
- Strong Profitability: The company not only reported significant revenue growth but also showcased robust bottom-line profitability, indicating operational efficiency and strong market demand, yet the market reaction failed to reflect this positive signal.
- Future Growth Expectations: Nvidia's guidance for even faster growth in the current quarter highlights its potential, and despite the lukewarm market response, investors should remain attentive to its ongoing innovations and leadership in the AI sector.
- Investor Caution: Despite Nvidia's impressive performance, Motley Fool analysts emphasize that investors should be cautious in stock selection, particularly in the current market environment, as Nvidia did not make it onto the recommended top ten stocks list.
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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: 184.890
Low
200.00
Averages
264.97
High
352.00
Current: 184.890
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
NVIDIA's AI Growth Continues to Surge Following Impressive Q4 Results
NVIDIA's Q4 Earnings Performance: NVIDIA's Q4 earnings report for fiscal 2026 shows strong revenue growth driven by AI, with a revenue of $68.3 billion, surpassing market expectations and indicating robust cash flow and investment potential.
Market Segments Growth: The company experienced significant growth across critical markets, particularly in data centers, automotive, and gaming, with data center revenue accounting for over 90% of total revenue and growing by 75% year-over-year.
Future Projections: Analysts project continued strong performance for NVIDIA, forecasting $78 billion in revenue for Q1 FY 2027, reflecting a 14.7% sequential increase and a 77% year-over-year growth, excluding China.
Investor Sentiment and Stock Outlook: Analysts maintain a bullish outlook on NVIDIA's stock, with a consensus target price suggesting significant upside potential, supported by strong cash flow and a healthy balance sheet, positioning the company well for future growth.
See More
Nvidia's Q4 Results Exceed Expectations Significantly
- Strong Performance: Nvidia reported an adjusted earnings per share of $1.62 for the quarter ending January 25, with revenue soaring 73% year-over-year to $68.13 billion, significantly exceeding Wall Street's forecast of $65.91 billion, indicating robust market demand and execution.
- Data Center Revenue Surge: Data center revenue reached $62.13 billion, surpassing expectations of $60.36 billion, reflecting a surge in enterprise demand for AI computing, further solidifying Nvidia's leadership in the AI sector.
- Optimistic Outlook: The company anticipates revenue of $78 billion for the upcoming fiscal first quarter, excluding any revenue from China, showcasing confidence in global markets while also indicating a cautious stance towards the Chinese market.
- Dividend Announcement: Nvidia declared a quarterly dividend of $0.01 per share to be paid on April 1, enhancing investor confidence and demonstrating the company's ability to return value to shareholders supported by strong cash flow.
See More
Analysts Claim Nvidia is Massively Undervalued
- Market Underestimation: Dan Ives from Wedbush Securities pointed out that Wall Street analysts have severely underestimated Nvidia's valuation, particularly ahead of the upcoming fourth-quarter earnings report, indicating a neglect of the company's potential.
- Surge in AI Demand: Ives emphasized that with the skyrocketing demand for artificial intelligence, Nvidia's chips play a crucial role in driving the AI revolution, making its future earnings pivotal.
- Performance Expectations: Ives anticipates a 'gold medal performance' from Nvidia, reflecting not only his confidence in the company's strong earnings but also potentially influencing investor perceptions of its stock.
- Stock Price Reaction: At the time of writing, Nvidia's shares were trading 2% higher, indicating a positive market response to the optimistic expectations surrounding the upcoming earnings report and analyst sentiments.
See More
Nvidia Projects Over $1 Trillion Revenue by 2030
- Surging AI Expenditure: Nvidia anticipates that by 2026, the big four AI hyperscalers will spend around $650 billion on data center capital expenditures, with the actual figure potentially nearing $1 trillion, highlighting the immense potential of the AI market and Nvidia's leading role within it.
- Future Growth Expectations: Nvidia projects that global data center capital expenditures could reach $3 trillion to $4 trillion by 2030, and if the lower end of this projection is realized, Nvidia's revenue could exceed $1 trillion, showcasing its robust growth momentum in the AI sector.
- Massive Profit Potential: With profit margins exceeding 50%, Nvidia could generate over $500 billion in profits if revenues reach $1 trillion, underscoring its competitive advantage in a high-margin industry.
- Valuation Outlook: Even applying a conservative 30 times trailing earnings valuation, Nvidia's market cap could soar to $15 trillion, significantly above current levels, indicating that investors should seize the opportunity to buy at today's lower prices in anticipation of future gains.
See More
Nvidia Reports 73% Revenue Growth but Stock Drops
- Significant Revenue Growth: Nvidia achieved a remarkable 73% revenue growth in its latest quarter, showcasing strong market performance; however, the stock fell about 5% post-earnings, indicating investor caution regarding future prospects.
- Strong Profitability: The company demonstrated stellar bottom-line profitability, further solidifying its leadership position in the semiconductor industry, yet despite this strong performance, market sentiment remains cautious about future growth expectations.
- Future Growth Guidance: Nvidia's guidance for even faster growth in the current quarter suggests potential for attracting long-term investors, but short-term stock volatility may undermine investor confidence.
- Market Reaction Analysis: Despite the impressive earnings report, analysts note that investor caution towards Nvidia may stem from concerns about the overall market environment, particularly as tech stocks face broader pressures.
See More
AMD's Surging Free Cash Flow Highlights Business Strength Amid AI Chip Market Risks
- Free Cash Flow Surge: AMD's free cash flow nearly doubled year-over-year to $2.1 billion in Q4, bringing its full-year total to a record $5.5 billion, showcasing the company's robust business strength amid strong demand for high-performance computing and AI products.
- Revenue and Net Income Growth: The company reported a 34% year-over-year increase in revenue and a 42% rise in adjusted net income, reaching a record $2.5 billion, indicating that AMD's strong performance in the data center market significantly supports its financial health.
- Market Competition Risks: While AMD faces fierce competition from Nvidia in the AI chip market, the surge in free cash flow suggests the company may be more competitively positioned than its stock price reflects, with a current P/E ratio of 42 times 2026 free cash flow estimates, dropping to 16 times for 2028 estimates.
- Future Product Potential: Upcoming data center products like the Helios computing platform are expected to drive growth in higher-margin products, sustaining free cash flow momentum and making the stock a rewarding investment over the next several years.
See More
NVIDIA's AI Growth Continues to Surge Following Impressive Q4 Results
NVIDIA's Q4 Earnings Performance: NVIDIA's Q4 earnings report for fiscal 2026 shows strong revenue growth driven by AI, with a revenue of $68.3 billion, surpassing market expectations and indicating robust cash flow and investment potential.
Market Segments Growth: The company experienced significant growth across critical markets, particularly in data centers, automotive, and gaming, with data center revenue accounting for over 90% of total revenue and growing by 75% year-over-year.
Future Projections: Analysts project continued strong performance for NVIDIA, forecasting $78 billion in revenue for Q1 FY 2027, reflecting a 14.7% sequential increase and a 77% year-over-year growth, excluding China.
Investor Sentiment and Stock Outlook: Analysts maintain a bullish outlook on NVIDIA's stock, with a consensus target price suggesting significant upside potential, supported by strong cash flow and a healthy balance sheet, positioning the company well for future growth.
See More
Nvidia's Q4 Results Exceed Expectations Significantly
- Strong Performance: Nvidia reported an adjusted earnings per share of $1.62 for the quarter ending January 25, with revenue soaring 73% year-over-year to $68.13 billion, significantly exceeding Wall Street's forecast of $65.91 billion, indicating robust market demand and execution.
- Data Center Revenue Surge: Data center revenue reached $62.13 billion, surpassing expectations of $60.36 billion, reflecting a surge in enterprise demand for AI computing, further solidifying Nvidia's leadership in the AI sector.
- Optimistic Outlook: The company anticipates revenue of $78 billion for the upcoming fiscal first quarter, excluding any revenue from China, showcasing confidence in global markets while also indicating a cautious stance towards the Chinese market.
- Dividend Announcement: Nvidia declared a quarterly dividend of $0.01 per share to be paid on April 1, enhancing investor confidence and demonstrating the company's ability to return value to shareholders supported by strong cash flow.
See More
Analysts Claim Nvidia is Massively Undervalued
- Market Underestimation: Dan Ives from Wedbush Securities pointed out that Wall Street analysts have severely underestimated Nvidia's valuation, particularly ahead of the upcoming fourth-quarter earnings report, indicating a neglect of the company's potential.
- Surge in AI Demand: Ives emphasized that with the skyrocketing demand for artificial intelligence, Nvidia's chips play a crucial role in driving the AI revolution, making its future earnings pivotal.
- Performance Expectations: Ives anticipates a 'gold medal performance' from Nvidia, reflecting not only his confidence in the company's strong earnings but also potentially influencing investor perceptions of its stock.
- Stock Price Reaction: At the time of writing, Nvidia's shares were trading 2% higher, indicating a positive market response to the optimistic expectations surrounding the upcoming earnings report and analyst sentiments.
See More
Nvidia Projects Over $1 Trillion Revenue by 2030
- Surging AI Expenditure: Nvidia anticipates that by 2026, the big four AI hyperscalers will spend around $650 billion on data center capital expenditures, with the actual figure potentially nearing $1 trillion, highlighting the immense potential of the AI market and Nvidia's leading role within it.
- Future Growth Expectations: Nvidia projects that global data center capital expenditures could reach $3 trillion to $4 trillion by 2030, and if the lower end of this projection is realized, Nvidia's revenue could exceed $1 trillion, showcasing its robust growth momentum in the AI sector.
- Massive Profit Potential: With profit margins exceeding 50%, Nvidia could generate over $500 billion in profits if revenues reach $1 trillion, underscoring its competitive advantage in a high-margin industry.
- Valuation Outlook: Even applying a conservative 30 times trailing earnings valuation, Nvidia's market cap could soar to $15 trillion, significantly above current levels, indicating that investors should seize the opportunity to buy at today's lower prices in anticipation of future gains.
See More
Nvidia Reports 73% Revenue Growth but Stock Drops
- Significant Revenue Growth: Nvidia achieved a remarkable 73% revenue growth in its latest quarter, showcasing strong market performance; however, the stock fell about 5% post-earnings, indicating investor caution regarding future prospects.
- Strong Profitability: The company demonstrated stellar bottom-line profitability, further solidifying its leadership position in the semiconductor industry, yet despite this strong performance, market sentiment remains cautious about future growth expectations.
- Future Growth Guidance: Nvidia's guidance for even faster growth in the current quarter suggests potential for attracting long-term investors, but short-term stock volatility may undermine investor confidence.
- Market Reaction Analysis: Despite the impressive earnings report, analysts note that investor caution towards Nvidia may stem from concerns about the overall market environment, particularly as tech stocks face broader pressures.
See More
AMD's Surging Free Cash Flow Highlights Business Strength Amid AI Chip Market Risks
- Free Cash Flow Surge: AMD's free cash flow nearly doubled year-over-year to $2.1 billion in Q4, bringing its full-year total to a record $5.5 billion, showcasing the company's robust business strength amid strong demand for high-performance computing and AI products.
- Revenue and Net Income Growth: The company reported a 34% year-over-year increase in revenue and a 42% rise in adjusted net income, reaching a record $2.5 billion, indicating that AMD's strong performance in the data center market significantly supports its financial health.
- Market Competition Risks: While AMD faces fierce competition from Nvidia in the AI chip market, the surge in free cash flow suggests the company may be more competitively positioned than its stock price reflects, with a current P/E ratio of 42 times 2026 free cash flow estimates, dropping to 16 times for 2028 estimates.
- Future Product Potential: Upcoming data center products like the Helios computing platform are expected to drive growth in higher-margin products, sustaining free cash flow momentum and making the stock a rewarding investment over the next several years.
See More
