Key Highlights
- Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion, representing an 85% year-over-year increase and surpassing analyst projections of $78.7 billion
- The company’s adjusted earnings per share reached $1.87, exceeding Wall Street’s consensus estimate of $1.75
- Ben Reitzes from Melius Research elevated his price target to $400 from $380, establishing a new Street-high while maintaining a Buy recommendation
- Stifel increased its price target to $282 from $250, highlighting Nvidia’s Vera CPU platform as representing a $200 billion addressable market expansion
- Management provided Q2 revenue guidance of approximately $91 billion, surpassing analyst forecasts, alongside a 75% adjusted gross margin outlook
Shares of Nvidia climbed in pre-market activity Wednesday following the chip giant’s impressive first-quarter fiscal 2027 financial performance that exceeded Wall Street projections.
The company generated $81.6 billion in revenue, marking an 85% year-over-year surge and topping the consensus estimate of $78.7 billion. Earnings per share on an adjusted basis reached $1.87, outperforming the $1.75 forecast.
Pre-market trading saw the stock hovering near $223.47, reflecting an approximate 1.30% increase.
Looking to the second quarter, Nvidia projected revenue of roughly $91 billion, exceeding analyst expectations. The company also forecasted an adjusted gross margin of 75% alongside operating expenses totaling $8.3 billion, both figures coming in above Street projections.
In response to these results, Ben Reitzes of Melius Research boosted his price objective to $400—representing the highest on Wall Street—from his previous $380 target, while reaffirming his Buy stance.
According to Reitzes, the quarterly performance challenged the narrative that Nvidia’s expansion depends solely on hyperscaler investments in AI infrastructure.
Diversification Beyond Major Cloud Providers
The analyst emphasized Nvidia’s revised reporting framework as a significant development. The semiconductor leader now organizes its operations into three distinct divisions: Hyperscale, ACIE, and Edge Computing.
Reitzes interprets this organizational shift as confirmation that Nvidia’s artificial intelligence momentum is penetrating enterprise AI applications, industrial AI implementations, robotics solutions, automotive technology, and edge computing sectors—all markets demonstrating faster expansion than conventional cloud infrastructure spending.
When excluding China from the calculation, Nvidia’s data center segment generated 118% year-over-year growth during the first quarter. Company leadership forecasted sustained growth exceeding 100% for the upcoming quarter using the same methodology.
Reitzes additionally emphasized Nvidia’s comprehensive AI ecosystem—encompassing GPUs, CPUs, networking infrastructure, storage solutions, and memory technology—as providing a sustainable competitive advantage.
Vera CPU Platform and Future Opportunities
Stifel likewise upgraded its price objective following the earnings release, adjusting from $250 to $282 while preserving its Buy recommendation.
The investment firm unveiled fiscal year 2029 projections accompanying the target increase. Stifel spotlighted Nvidia’s forthcoming Vera CPU platform as providing incremental revenue potential of $20 billion within a total addressable market valued at $200 billion.
According to Stifel’s analysis, Nvidia participates in markets representing a combined addressable opportunity surpassing $100 billion as 2025 concludes, with long-term potential exceeding $1 trillion.
The firm’s near-term growth assessment focuses on high-performance computing applications, hyperscale and cloud data center infrastructure, and enterprise plus edge computing deployments.
Reitzes independently noted the Vera Rubin systems as an additional catalyst for future expansion as artificial intelligence workloads increase in both magnitude and sophistication.
Nvidia currently maintains a gross profit margin of 71%, having generated a 70% stock appreciation over the trailing twelve months, based on InvestingPro analytics.
Wall Street’s collective assessment 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.
