Key Highlights
- Nvidia delivered Q1 FY27 earnings per share of $1.87, surpassing analyst expectations of $1.76, while revenue reached $81.62 billion — reflecting an 85.2% year-over-year increase
- Stifel upgraded its NVDA price objective to $282, and Mizuho increased its target to $300, with both firms maintaining Buy recommendations
- The company unveiled an $80 billion stock repurchase authorization and significantly increased its quarterly dividend from $0.01 to $0.25 per share
- Analyst consensus points to a Strong Buy rating, with an average price objective of approximately $304, suggesting potential upside of around 43% from present trading levels
- Following earnings, NVDA stock has experienced sideways trading action, with concerns emerging around valuation metrics and cautionary commentary from Michael Burry
Nvidia unveiled its fiscal 2027 first-quarter financial performance on May 20, surpassing market expectations across both revenue and earnings metrics. The chipmaker generated $81.62 billion in quarterly revenue, exceeding the Street’s forecast of $78.42 billion and representing an 85.2% jump compared to the prior-year period. Earnings per share reached $1.87, comfortably ahead of the $1.76 consensus figure.
NVDA stock began Wednesday’s session at $214.86 and has climbed approximately 15% since the start of the year. Over the past twelve months, shares have fluctuated between $132.92 and $236.54.
Despite impressive quarterly figures, market response has been relatively subdued. Investors continue monitoring whether the post-announcement momentum will translate into sustained gains or trigger a correction.
Stifel’s Ruben Roy maintained his Buy recommendation while elevating his price objective to $282 from $250. He highlighted management’s discussion regarding the Vera CPU platform, which unlocks a fresh $200 billion addressable market opportunity, with expectations for approximately $20 billion in standalone CPU revenue during FY27.
Roy also emphasized GPU pricing resilience. H100 rental rates have climbed 20% year-to-date, with A100 cloud pricing advancing 15%. He characterized this as evidence of robust demand extending far beyond typical depreciation patterns.
Nvidia’s networking division delivered particularly strong performance. Revenue skyrocketed 199% year-over-year to $14.8 billion. Roy characterized Spectrum-X as the revenue leader in the AI-Ethernet category.
Mizuho Establishes $300 Price Objective
Mizuho analyst Vijay Rakesh elevated his price target to $300 from $275, maintaining his Buy stance. He anticipates Nvidia will continue dominating as the primary merchant AI-GPU provider and projects the stock could trade at approximately 25x FY28 projected earnings.
Rakesh highlighted that the Vera Rubin platform is scheduled for launch in the October quarter. He also referenced Nvidia’s forecast that the AI infrastructure market will expand to $3 to $4 trillion by 2030.
Physical AI segment revenue exceeded $9 billion over the past twelve months, fueled by expanding automotive collaborations with BYD, Uber, Geely, and Hyundai.
The Street’s consensus shows 38 analysts assigning NVDA a Buy rating, one recommending Hold, and one suggesting Sell. The mean price target hovers around $304, implying potential appreciation of roughly 43% from current price levels. Melius Research holds the most bullish view with a $400 target.
Share Repurchase and Dividend Enhancement
Nvidia’s board greenlit an $80 billion stock buyback program, supplementing the $39 billion still available under previous authorizations. CFO Colette Kress indicated the company plans to distribute approximately 50% of free cash flow to shareholders throughout FY27.
The quarterly dividend received a dramatic boost — jumping from $0.01 per share to $0.25 per share. Shareholders of record on June 4 will receive the dividend payment on June 26.
CX Institutional expanded its NVDA position by 1.4% during Q4, elevating its holdings to 300,575 shares valued at roughly $56.1 million. Institutional ownership comprises 65.27% of outstanding shares.
Bullish sentiment isn’t universal. Michael Burry released a public caution suggesting the stock could experience significant downside, citing excessive AI enthusiasm and overcrowded momentum positioning as potential vulnerability factors.
The stock’s 50-day moving average is positioned at $197.43, with the 200-day average at $189.19. Current market capitalization approximates $5.20 trillion.
