We're raising our price target on Nvidia after another knockout quarter and guide
Nvidia shares aren't moving much in extended trading. But the initial reaction hardly tells the full story.
TL;DR
- Nvidia's Q1 FY2027 revenue reached $81.62 billion, an 85% year-over-year increase, surpassing consensus estimates.
- Adjusted EPS surged 140% to $1.98, also exceeding analyst expectations.
- The company issued Q2 FY2027 revenue guidance of $91 billion, significantly above the consensus estimate of $86.84 billion.
- Demand for AI data center infrastructure, particularly for agentic AI systems, is described as 'parabolic'.
- Nvidia's revenue is split roughly 50-50 between hyperscale customers and other sources like AI-native companies and enterprises.
- The company is expanding its product offerings to include CPUs, such as the new Vera CPU, positioning itself as a major data center CPU provider.
- Nvidia reported $75.25 billion in Data Center revenue, with strong growth in both Hyperscale and Industrial, & Enterprise (ACIE) customer segments.
- Sales to China contributed zero revenue in the quarter, consistent with previous periods.
- Nvidia increased its quarterly dividend to $0.25 per share and authorized an additional $80 billion for share repurchases.
- The company's fiscal year 2027 outlook includes adjusted gross margins expected around 75%.