President Trump made a total of at least $220 million in stock and bond purchases in the first quarter, according to an Office of Government Policy filing. Six of those businesses included chipmaker Intel Corporation (INTC), which grabbed eyeballs. However, there was another notable deal where the US President bought up to $5 million worth of shares in the chip behemoth Nvidia (NVDA).
Also, Nvidia has received US approval to export H200 AI advanced processors to about 10 Chinese companies. There was a glimmer of hope when Nvidia CEO Jensen Huang was invited on Air Force One to visit China with the President, after the company had to abandon the Chinese market because regulations stopped the export of its AI chips to the country.
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However, China closed its doors to the agreement, as Beijing refused to approve the purchase of Nvidia H200 AI chips. It seems that the company has to continue to sacrifice the opportunity of the 50 billion Chinese market.
We look at Nvidia this time, posting its blockbuster Q1 profit.
About Nvidia Stock
Nvidia has become the world’s most valuable company, fueled by its leadership in AI and high-performance computing. Its advanced GPUs and AI platforms power data centers, cloud services, and advanced applications, positioning the company as a central force in global technology and the driving engine of the AI revolution. Nvidia has a market capitalization of $5.21 trillion.
Based on exploding demand for AI chips and record earnings, Nvidia stock is holding up well on Wall Street. Over the past 52 weeks, the stock has gained 63.65%, and is up 15.21% year to date (YTD). Nvidia shares had reached an intraday high of $236.54 on May 14, but fell 9.17% from that level.
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Nvidia stock has a 14-day relative strength index (RSI) of 53.26, indicating modest bullish momentum but no strong trading signal. On a forward-adjusted basis, its price-to-earnings ratio (non-GAAP) of 24.10 times is lower than the industry average of 24.66 times.
Nvidia Crushes Q1 Expectations as AI Boom Drives Revenue Increase
On May 20, Nvidia reported another quarterly earnings. For the first fiscal quarter of 2027 (the quarter ended April 26), the company’s revenue increased 85% year-over-year (YOY) to $81.62 billion, which was higher than the $78.75 billion expected by Wall Street analysts. Data center revenue reached a record $75.20 billion, up 92% YOY. However, Nvidia’s stock fell 1.8% on the day of May 21, which is thought to be due to investors already pricing in bullish and profit-taking.
As agent AI begins to develop, Nvidia sees itself as uniquely positioned in this new phase of AI growth due to its full functionality. The company is experiencing strong demand for its Blackwell infrastructure, and the Vera Rubin platform looks set to be a blockbuster.
Nvidia’s profits also grew at a faster pace in Q1. Non-GAAP operating income increased 147% year over year to $53.78 billion. Its non-GAAP EPS rose 140% YOY to $1.87, above the $1.77 expected by Street analysts.
In the first quarter, Nvidia returned a record 20 billion dollars (approximately) to shareholders through share repurchases and dividend payments. It increased its quarterly dividend by 2,400% from $0.01 per share to $0.25 per share (to be paid to shareholders on June 26). In the second quarter, despite not taking any data center revenue from China, the company expects revenue to reach $91 billion, plus or minus 2%.
Wall Street analysts are optimistic about Nvidia’s future earnings. They expect the company’s EPS to rise 89.9% YOY to $1.88 in Q2 FY2027. For fiscal 2027, EPS is expected to increase 74.6% annually to $7.98, followed by 36.3% growth to $10.88 in fiscal 2028.
What Do Analysts Think About Nvidia’s Stock?
After Nvidia’s latest quarterly results, Wall Street analysts reiterated their positive stance on the stock. Analysts at RBC Capital maintained an “Outperform” rating and raised their price target from $250 to $270, citing strong demand for Blackwell and an uptick in Rubin’s structure.
Analysts at Stifel also maintained a “Buy” rating and raised the price target from $250 to $282. Stifel analysts believe Nvidia’s Vera CPU contributes $20 billion in incremental revenue and access to an addressable market of $200 billion, building on a $1 trillion revenue floor. JPMorgan analysts raised their price target from $265 to $280 while maintaining an “overweight” rating, citing management’s confirmation of expectations for continued sequential growth this year into next year.
Baird analysts see an ongoing bullish cycle in data center GPUs, leading them to maintain an “Outperform” rating and raise their price target from $275 to a Street-high of $500.
Nvidia has been in the spotlight on Wall Street for quite some time, with analysts giving it an overall “Strong Buy” consensus rating. Out of 49 analysts rating the stock, a majority of 43 rate it a “Strong Buy,” three rate it a “Neutral Buy,” two analysts take a middle-of-the-road approach as a “Hold,” and only one analyst gives a “Strong Sell” rating. The consensus target price of $296.20 represents a 37.86% upside from current levels. Furthermore, the high street price of $500 shows a 132.7% upside.
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As of the date of publication, Anushka Dutta had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
