Key Highlights
- First-quarter FY2027 revenue reached $81.6 billion, representing an 85% year-over-year increase and surpassing the $78.7 billion consensus
- Earnings per share on an adjusted basis hit $1.87, exceeding Wall Street’s $1.75 forecast
- Ben Reitzes from Melius Research lifted his price target to $400 from $380, establishing a new Street-high, while maintaining a Buy recommendation
- Stifel increased its target from $250 to $282, highlighting the Vera CPU platform’s potential $200 billion market opportunity
- Second-quarter revenue guidance of approximately $91 billion topped analyst projections, with adjusted gross margin forecasted at 75%
Shares of Nvidia moved higher during Wednesday’s pre-market session following the semiconductor giant’s impressive first-quarter Fiscal 2027 financial performance that exceeded Wall Street expectations.
The company reported quarterly revenue of $81.6 billion, marking an 85% jump from the prior-year period and beating the Street’s $78.7 billion projection. Adjusted earnings per share of $1.87 topped the consensus estimate of $1.75.
Pre-market activity showed the stock changing hands near $223.47, representing approximately a 1.30% gain.
Looking to the current quarter, Nvidia projected revenue of roughly $91 billion, surpassing analyst forecasts. The company’s adjusted gross margin outlook of 75% and operating expense guidance of $8.3 billion also exceeded consensus expectations.
In response to these results, Ben Reitzes of Melius Research elevated his price target to $400 from $380 — marking the highest on Wall Street — while reaffirming his Buy recommendation.
According to Reitzes, the quarterly performance challenges the narrative that Nvidia’s expansion depends solely on hyperscaler investments in AI infrastructure.
Diversification Beyond Hyperscale Customers
The analyst emphasized Nvidia’s revised reporting framework as a significant development. The chipmaker now organizes its operations across three divisions: Hyperscale, ACIE, and Edge Computing.
This reorganization, Reitzes notes, demonstrates that Nvidia’s artificial intelligence momentum extends into enterprise applications, industrial AI solutions, robotics, automotive technology, and edge computing — sectors typically experiencing faster expansion than conventional cloud infrastructure spending.
When excluding China from the equation, Nvidia’s data center segment delivered 118% year-over-year growth in the first quarter. Company leadership projected sustained triple-digit growth on this metric for the coming quarter.
Reitzes further emphasized Nvidia’s comprehensive AI ecosystem — encompassing graphics processors, central processors, networking infrastructure, storage systems, and memory solutions — as a sustainable competitive advantage.
Vera CPU Platform Expands Growth Horizon
Stifel similarly elevated its outlook following the earnings release, raising its price target to $282 from $250 while keeping a Buy rating intact.
The investment firm unveiled fiscal 2029 projections alongside its upgrade. Stifel drew attention to Nvidia’s forthcoming Vera CPU platform, which presents incremental revenue potential of $20 billion within a total addressable market valued at $200 billion.
According to Stifel’s analysis, Nvidia operates across markets representing a combined addressable opportunity exceeding $100 billion as 2025 concludes, with long-term potential surpassing $1 trillion.
The firm’s near-term growth thesis focuses on high-performance computing applications, hyperscale and cloud infrastructure deployments, and enterprise plus edge computing implementations.
Reitzes independently identified the Vera Rubin systems as an additional catalyst for future expansion as artificial intelligence workloads become increasingly demanding and sophisticated.
Nvidia maintains a gross profit margin of 71%, having generated a 70% stock appreciation over the trailing twelve months, per InvestingPro data.
Aggregate Wall Street sentiment across 40 Buy recommendations, one Hold rating, and one Sell rating establishes Nvidia as a Strong Buy. The mean 12-month price objective 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
