Nvidia Reports Blockbuster Earnings and Guidance Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: seekingalpha
- Earnings Beat Expectations: Nvidia's earnings report revealed revenue and guidance that surpassed Wall Street forecasts, yet persistent chip demand failed to boost investor confidence, indicating market caution regarding future performance.
- Upcoming Product Launches: GF Securities analyst Jeff Pu anticipates significant announcements at the upcoming GTC event, including the launch of a Language Processing Unit (LPU) tied to Nvidia's $20 billion licensing deal with Groq, which could enhance market sentiment towards the company.
- Technological Innovations: Pu also expects Nvidia to update its forecasts on AI infrastructure spending and introduce new products like the VR200 NVL72 and NVL576, which will further solidify its leadership in high-bandwidth memory and enhance competitive positioning.
- Future Outlook: The GTC event is scheduled for March 16-19, with Huang expected to deliver a keynote on the 16th; analysts widely believe Nvidia may unveil next-gen Feynman chips and the latest 1.6-nanometer technology, potentially driving future growth.
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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.
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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.
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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.
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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
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- 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
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- 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
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- Market Potential: McKinsey projects that the general-purpose robotics market could reach $370 billion by 2040, and by moving Intrinsic from 'Other Bets' to the main company, Google positions itself to capitalize on this significant opportunity, driving growth in the robotics sector.
- Technological Integration: Intrinsic will closely collaborate with Google's AI models, infrastructure, and cloud tools, leveraging DeepMind's technology stack to enhance the efficiency of robotic application development, thereby accelerating time-to-market and strengthening competitive positioning.
- Strategic Partnerships: Intrinsic has partnered with Foxconn to deploy AI robots for electronics assembly in U.S. factories, addressing the strong market demand for smart manufacturing, which is expected to further penetrate the manufacturing sector.
- Innovative Product Launch: Intrinsic's flagship product, Flowstate, enables users to build robotic applications without extensive coding, akin to Google's Android strategy, and the introduction of such open-source tools is likely to attract more developers, further expanding market share.
See More
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- Technological Progress and Market Reaction: In the first two months of 2026, generative artificial intelligence rapidly evolved from chatbots to full executive assistants, triggering a widespread sell-off in stocks across software, legal, insurance, and cybersecurity sectors, indicating the market's sensitivity to swift AI advancements.
- Erosion of Safety Commitments: Anthropic was blacklisted by the Trump administration for refusing to comply with Pentagon demands, abandoning its initial promise of responsible AI development in favor of 'nonbinding, publicly declared targets,' highlighting the urgency and competitive pressure regarding safety standards in the industry.
- Political Impact and Regulatory Controversy: New York Assemblyman Alex Bores authored the first major AI safety law in the U.S. and is now running for Congress, facing a $125 million super PAC backed by OpenAI co-founder and others, illustrating the significance of AI regulation in the 2026 midterms.
- Internal Industry Turmoil: Recent resignations of researchers at OpenAI and Anthropic, who warned of AI safety risks, reflect growing concerns within the industry about the rapid development of AI technologies, which could influence future technological directions and regulatory policies.
See More
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- Nvidia Price Fluctuation: Despite a 53.88% annual increase, NVDA's post-earnings decline has upset retail investors, with current trading around $185 to $187, indicating a weak short-term price trend that may affect investor confidence.
- Netflix Termination Fee Controversy: NFLX's plan to walk away from the WBD deal could yield a $2.8 billion termination fee; although the stock has declined 12.15% over the past year, its strong short-term performance reflects positive market reaction to strategic decisions.
- AMD Stock Rebound: AMD shares have surged 104.68% over the past year, trading between $201 and $204, showing a strong long-term trend despite weaker short-term performance, indicating investor confidence in future growth.
- Salesforce Market Reaction: CRM's stock has fallen 32.36% over the past year, currently trading between $194 and $201, with retail investors mocking its “dinosaur tech” status, reflecting market skepticism about its innovation capabilities, which may impact future performance.
See More
