Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) shares slipped roughly 2% following its fiscal first-quarter earnings, but four Wall Street analysts weren't fazed, raising price targets across the board after the chipmaker posted record revenue and issued guidance that topped already elevated expectations.
The company reported fiscal first-quarter revenue of $81.6 billion, beating Wall Street estimates by approximately $3 billion, while data center revenue of $75 billion came in around $2 billion ahead of expectations.
Fiscal second-quarter revenue is expected to reach $91 billion at the midpoint, above the Street consensus of roughly $87 billion, though broadly in line with the more bullish expectations circulating ahead of the print.
The post-earnings dip did not deter most analysts. Bank of America raised its price target to $350 from $320, calling Nvidia its top pick and reiterating a Buy rating. The bank cited the company's full-stack AI portfolio, a gross margin holding at 75%, and a capital return program it described as arriving ahead of schedule, with Nvidia boosting its dividend roughly 25-fold and announcing a buyback authorization now totalling approximately $120 billion.
UBS lifted its target to $280 from $275 and offered the most granular read on Nvidia's supply position, tracking the company's combined inventory and purchase commitments at $145 billion, up $28 billion quarter-over-quarter. The bank noted that all incremental commitment growth this quarter extended into fiscal 2028 through 2031, suggesting near-term supply is fully secured.
Baird issued the most aggressive price target revision, moving to $500 and calling Nvidia one of its top large-cap ideas. The firm highlighted Nvidia's share gains in inferencing and flagged management's expectation that the upcoming Vera Rubin platform would see faster adoption at frontier model companies than its Blackwell predecessor.
Wedbush also maintained its bullish stance, pointing to sovereign customer revenue growing 80% year-over-year as evidence that demand is broadening well beyond the major hyperscalers. The firm noted that stripping out China revenue, which contributed roughly $4 billion in the year-ago period but zero this quarter due to export restrictions, underlying growth came in at approximately 109% year-over-year.
A major focus across all four notes was Nvidia's disclosure of approximately $20 billion in standalone Vera CPU revenue visibility for the current year, which management framed as opening a new $200 billion total addressable market. Baird cited Nvidia's own performance claims for the Vera chip, including up to 1.5 times faster performance per core, double the performance per watt, and four times greater rack density compared with x86-based processors. UBS applied more caution to the headline figure, estimating that actual chip revenue could be closer to $5 to $7 billion once DRAM and other system components are stripped out.
Bank of America flagged two risks it viewed as structural. With Nvidia now representing approximately 8.3% of the S&P 500 index and held by roughly 78% of active fund managers, the firm said the stock's sheer weight in portfolios acts as a ceiling on further multiple expansion, which it cited as the reason for moving to a slightly lower 26 times calendar 2027 earnings multiple despite raising its estimates. The bank also acknowledged hyperscaler appetite for custom chips as an ongoing risk, though it expects Nvidia to retain more than 70% of the accelerator market over time.
UBS struck a similar note of caution on margins, flagging that HBM4E memory, which it expects to account for the majority of Nvidia's high-bandwidth memory consumption by the second half of 2027, carries prices roughly 90% higher than the HBM3E currently in use. While Nvidia expressed confidence in sustaining mid-70% gross margins, UBS said the margin debate for fiscal 2028 remains unresolved.
Nvidia's Vera Rubin platform is on track to begin production shipments in the third quarter of this fiscal year, with a broader ramp expected in the fourth quarter. Management noted the new line is expected to remain supply-constrained throughout its product life.
Second-quarter guidance of $91 billion excludes any contribution from China data center compute revenue, which analysts flagged as potential upside if export restrictions ease.