Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) shares fell more than 5% on Thursday despite upbeat analyst commentary following the company’s latest earnings report, as investors digested the results and outlook for the AI chip leader.
Analysts at Jefferies maintained a constructive stance, highlighting what they described as a “significant beat & raise” driven by strong Blackwell shipments and demand visibility extending into 2027.
The firm said Nvidia “was already cheap and will look remarkably cheaper,” pointing to an upside earnings scenario that could push fiscal 2027 earnings per share (EPS) above $14.
Jefferies said it came away “increasingly confident on both the near-term trajectory and the longer-term earnings power of the model,” even as it acknowledged that “we don’t know when investors will look at these AI names more positively.”
The firm added that the upcoming GTC conference could provide another opportunity for Nvidia to demonstrate its technical leadership.
The analysts noted that the sustained Blackwell ramp helped drive January-quarter revenue ahead of expectations, with Grace-Blackwell systems now representing the majority of data center revenue.
Jefferies also pointed to networking as an emerging second growth engine alongside compute, reflecting accelerating demand across both scale-up and scale-out architectures.
Looking ahead, the firm said April-quarter guidance came in “well above” expectations, supported primarily by data center growth. Gross margin guidance in the mid-70% range was also viewed as supportive of the longer-term earnings outlook.
Wedbush analysts similarly reiterated an ‘Outperform’ rating and raised their price target to $300 from $230, arguing that Nvidia’s growth continues to defy concerns about scale.
“While the fiscal Q4 acceleration in data center sales was impressive given the law of large numbers, we’d call out fiscal Q1 2027 sales guidance ($78B) in particular as being the highlight of the call,” the firm wrote.
Wedbush said the outlook appeared “well in excess of prior buy-side expectations,” adding that management may still be leaving room for upside when results are reported.
The firm also emphasized Nvidia’s expanding supply chain commitments, which rose to $95.2 billion from $50.3 billion in the prior quarter. Wedbush believes that the move reinforces its view that Nvidia was early in addressing supply constraints, creating “a competitive moat that should last through at least this calendar year.”
In addition, Wedbush highlighted continued momentum in networking, which it said is benefiting from Nvidia’s push to deliver a full-stack AI infrastructure offering and broader customer adoption beyond the largest cloud service providers.
On China, Wedbush noted that the company has not yet resumed meaningful shipments of its H200 products to the market, calling Nvidia’s current performance “only more impressive” given the absence of revenue from the world’s second-largest economy. The firm sees a potential return to China as a future catalyst.