Important Information
On May 20, Nvidia released its financial report for Q1 of fiscal year 2027, with results surpassing Wall Street's expectations across key metrics. The chipmaker's revenue reached $81.62 billion, exceeding the consensus estimate of $78.42 billion by analysts, marking a significant year-over-year increase of 85.2%. Earnings per share stood at $1.87, well above the forecast of $1.76.
NVIDIA Corporation, NVDA
Despite this impressive quarterly performance, market reaction has been relatively muted. Market participants are still observing whether the price movements following the announcement indicate a potential adjustment.
Stifel's Ruben Roy maintained a 'Buy' rating while raising the target price from $250 to $282. He emphasized management's discussion on the Vera CPU, which creates a new $200 billion market opportunity for the company, with independent CPU sales expected to reach around $20 billion in fiscal year 2027.
Roy also noted the upward trend in GPU rental prices. Year-to-date, H100 rental prices have increased by 20%, while A100 cloud service prices have risen by 15%. He views these trends as signs of strong demand, exceeding typical depreciation patterns.
Mizuho Sets $300 Price Target
Mizuho's Vijay Rakesh raised the target price from $275 to $300 while maintaining a 'Buy' rating. He expects Nvidia to continue as a leading supplier of commercial AI-GPUs and predicts the stock will trade at about 25 times the expected earnings for fiscal year 2028.
Over the past 12 months, Nvidia's physical AI revenue has exceeded $9 billion, driven by automotive collaborations with companies like BYD, Uber, Geely, and Hyundai.
Among Wall Street analysts, 38 have given NVDA a 'Buy' rating, 1 has maintained a 'Hold', and 1 has issued a 'Sell' recommendation. The overall target price is close to $304, indicating about 43% upside potential from current trading levels. Melius Research holds the most optimistic view on the stock, with a target price of $400.
Nvidia's board has approved an $80 billion stock buyback authorization, supplementing a previous $3.9 billion repurchase plan. CFO Colette Kress stated that the company plans to allocate about 50% of its free cash flow to shareholders in fiscal year 2027.
The quarterly dividend has been significantly increased—from $0.01 per share to $0.25 per share. Shareholders on record as of June 4 will receive payment on June 26.
CX Institutional increased its NVDA holdings by 1.4% in the fourth quarter, raising its stake to 300,575 shares, valued at approximately $56.1 million. Institutional ownership accounts for 65.27% of the float.
The stock's 50-day moving average currently stands at $197.43, while the 200-day moving average is at $189.19. Nvidia's market capitalization is approximately $5.20 trillion.