Nvidia Reports Spectacular Earnings, Revenue Growth Accelerates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 29 minutes ago
0mins
Source: NASDAQ.COM
- Significant Revenue Growth: Nvidia's fiscal Q1 revenue surged 85% year-over-year to $81.62 billion, exceeding analyst expectations of $78.7 billion, demonstrating the company's strong market demand and growth potential in the AI infrastructure sector.
- Data Center Performance: Data center revenue rose 92% year-over-year to $75.2 billion, with hyperscale customer revenue soaring 115% to $37.9 billion, indicating the company's strengthening leadership in the cloud computing and enterprise markets.
- Strong Cash Flow: The company generated $50.3 billion in operating cash flow and $48.6 billion in free cash flow during the quarter, with total cash and marketable securities reaching $80.5 billion, reflecting robust financial health and capital management capabilities.
- Optimistic Future Outlook: Nvidia projects Q2 revenue to reach $91 billion, representing a 95% increase, and while it anticipates no data center revenue from China, the company is actively working to meet the surging market demand.
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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: 219.510
Low
200.00
Averages
264.97
High
352.00
Current: 219.510
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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- Massive Buyback Authorization: The board approved an additional $80 billion stock repurchase program, indicating management's belief that the current stock price is undervalued and aiming to enhance shareholder confidence through capital return.
- Historical Buyback Trends: Over the past year, Nvidia has authorized more than $25 billion in stock buybacks, demonstrating a consistent capital return strategy, particularly returning over $41.1 billion to shareholders through buybacks and dividends in fiscal 2026.
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- Strong Data Center Performance: Data center revenue increased by 92% to $75.2 billion, with hyperscale revenue soaring 115% to $37.9 billion, indicating the company's continued dominance in the cloud and enterprise markets.
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See More
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- Data Center Performance: Data center revenue rose 92% year-over-year to $75.2 billion, with hyperscale customer revenue soaring 115% to $37.9 billion, indicating the company's strengthening leadership in the cloud computing and enterprise markets.
- Strong Cash Flow: The company generated $50.3 billion in operating cash flow and $48.6 billion in free cash flow during the quarter, with total cash and marketable securities reaching $80.5 billion, reflecting robust financial health and capital management capabilities.
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- Massive Buyback Authorization: The board approved an additional $80 billion stock repurchase program, indicating management's belief that the current stock price is undervalued and aiming to enhance shareholder confidence through capital return.
- Historical Buyback Trends: Over the past year, Nvidia has authorized more than $25 billion in stock buybacks, demonstrating a consistent capital return strategy, particularly returning over $41.1 billion to shareholders through buybacks and dividends in fiscal 2026.
- Attractive Market Valuation: With a current P/E ratio of 25 times expected earnings, Nvidia appears relatively undervalued compared to historical premiums during AI expansion phases, making the buyback decision not just a capital return but a strong signal of future growth potential.
See More
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- Massive Capital Raise: SpaceX aims to raise approximately $75 billion through its IPO, with a valuation between $1.75 trillion and $2 trillion, positioning it as potentially the largest IPO in history and attracting significant investor interest.
- Infrastructure Supplier Dependence: While SpaceX's IPO garners attention, history indicates that infrastructure suppliers like Nvidia often achieve higher long-term returns, highlighting the market's ongoing demand for essential technology support.
- Clear Funding Utilization: The IPO proceeds will be directed towards expanding the Starlink network, enhancing Starship reusability, and designing data centers that could be deployed in orbit, all of which require substantial GPU support, thereby reinforcing the partnership with Nvidia.
- Expected Market Volatility: SpaceX stock is anticipated to experience typical post-IPO volatility, particularly after lock-up periods expire when insiders may begin to take profits, while Nvidia could benefit from the influx of capital due to its dominant position in AI infrastructure.
See More
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- Significant Revenue Growth: Nvidia's fiscal Q1 revenue surged 85% year-over-year to $81.62 billion, significantly exceeding analyst expectations of $78.86 billion, demonstrating its robust growth momentum in the AI infrastructure sector.
- Strong Data Center Performance: Data center revenue increased by 92% to $75.2 billion, with hyperscale revenue soaring 115% to $37.9 billion, indicating the company's continued dominance in the cloud and enterprise markets.
- Robust Cash Flow: The company generated operating cash flow of $50.3 billion and free cash flow of $48.6 billion in the quarter, ending with $80.5 billion in cash and marketable securities, reflecting its strong financial health and investment capacity.
- Optimistic Future Outlook: Nvidia projects Q2 revenue to reach around $91 billion, representing a 95% growth, despite not anticipating data center revenue from China, as the company actively seeks supply chain solutions to meet market demand.
See More
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- Significant Revenue Growth: Nvidia's fiscal Q1 revenue surged 85% year-over-year to $81.62 billion, exceeding analyst expectations of $78.7 billion, demonstrating the company's strong market demand and growth potential in the AI infrastructure sector.
- Data Center Performance: Data center revenue rose 92% year-over-year to $75.2 billion, with hyperscale customer revenue soaring 115% to $37.9 billion, indicating the company's strengthening leadership in the cloud computing and enterprise markets.
- Strong Cash Flow: The company generated $50.3 billion in operating cash flow and $48.6 billion in free cash flow during the quarter, with total cash and marketable securities reaching $80.5 billion, reflecting robust financial health and capital management capabilities.
- Optimistic Future Outlook: Nvidia projects Q2 revenue to reach $91 billion, representing a 95% increase, and while it anticipates no data center revenue from China, the company is actively working to meet the surging market demand.
See More
Wall Street Trading Week Outlook and Focus
- Salesforce Earnings Outlook: Salesforce is set to report earnings on Wednesday, with market concerns about its AI business still prevalent; analysts expect revenue of $11.05 billion and EPS of $3.12, and strong revenue growth could alleviate worries about slowing growth in its legacy business.
- Costco Membership Renewal Challenges: Costco will report earnings on Thursday, with expected revenue of $69.73 billion and EPS of $4.93; while high oil prices may pressure profit margins, its membership model and bulk selling strategy are likely to attract consumers, especially during periods of rising gas prices.
- Economic Data Focus: The personal consumption expenditures (PCE) price index will be released on Thursday, with a year-over-year increase expected at 3.8% and a core increase of 3.3%, which will influence the Federal Reserve's rate hike decisions, leaving the market uncertain about future rate changes.
- Investor Conference Season: This week marks the start of investor conference season, with Boeing, Johnson & Johnson, and others attending the Bernstein Strategic Decisions Conference, where analyst questions may reveal insights into market perceptions of company futures, making it a key event to watch.
See More
Nvidia Actively Expands AI Equity Investments
- Equity Investment Strategy: Nvidia is establishing a partnership with Iren, planning to acquire up to 30 million shares at $70 each over five years, representing a potential $2.1 billion investment that underscores its deep involvement in the AI data center sector.
- Strong Market Performance: Iren's stock has surged nearly 600% over the past year, currently trading around $57, with expectations to exceed $70 in five years, which would yield significant returns for Nvidia and enhance its financial health.
- Diversified Portfolio: Nvidia has also invested $5 billion in Intel by the end of 2025, benefiting from over 200% gains, reflecting its broad investment strategy aimed at enhancing overall returns through diversification in the AI industry.
- Industry Leadership: Nvidia maintains strong relationships with companies like CoreWeave, Synopsis, and Coherent, leveraging its leadership in the AI chip market to actively expand equity investments, demonstrating confidence in sustained growth and future market opportunities.
See More
