tech
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%.