NVIDIA
Corporation (NASDAQ: NVDA) posted record first-quarter revenue of $44.1 billion
on Wednesday, exceeding analyst expectations despite absorbing a $4.5 billion
charge related to new U.S. export restrictions on its China-bound H20 chips.
NVIDIA
shares closed yesterday’s session at $134. In Thursday’s premarket trading,
however, they are up more than 5%, reaching $142, the highest level in three
months. Moreover, NVIDIA shares predictions from two independent analysts
suggest the stock could soon surge by 35%, potentially hitting an all-time high
of $185.
NVIDIA
reported adjusted earnings per share of $0.81, surpassing the $0.93 consensus
estimate, while revenue of $44.06 billion topped the expected $43.31 billion
for a three-month period ended April 27, 2025. However, the company’s guidance
for the current quarter of approximately $45 billion fell short of analyst
projections of $45.9 billion, primarily due to the ongoing impact of China
export controls.
Nvidia CEO Jensen Huang (Reuters).
The
company’s data center division, which includes artificial intelligence chips
and related components, generated $39.1 billion in revenue during the quarter,
representing a 73% increase from the same period last year and accounting for
88% of total revenue. This performance underscored the continued strong demand
for AI infrastructure globally.
“Global
demand for NVIDIA’s AI infrastructure is incredibly strong,” CEO Jensen
Huang said in a statement. “AI inference token generation has surged
tenfold in just one year, and as AI agents become mainstream, the demand for AI
computing will accelerate.”
Large cloud
service providers accounted for just under half of the data center unit’s
revenue, while networking products contributed $5 billion in sales. Chief
Financial Officer Colette Kress noted that Microsoft has “deployed tens of
thousands of Blackwell GPUs and is expected to ramp to hundreds of
thousands” of the company’s GB200 product.
NVIDIA
Q1 FY26 Revenue by Market Platform
Market Platform
Q1 FY26 ($M)
Q4 FY25 ($M)
Q1 FY25 ($M)
Q/Q Growth
Y/Y Growth
Data Center
$39,112
$35,580
$22,563
10%
73%
– Compute
$34,155
$32,556
$19,392
5%
76%
– Networking
$4,957
$3,024
$3,171
64%
56%
Gaming
$3,763
$2,544
$2,647
48%
42%
Professional
Visualization
$509
$511
$427
0%
19%
Automotive
$567
$570
$329
-1%
72%
OEM and
Other
$111
$126
$78
-12%
42%
Total
Revenue
$44,062
$39,331
$26,044
12%
69%
China Export Controls
Create Significant Impact
The
quarter’s results were significantly affected by new U.S. government export
licensing requirements for NVIDIA’s H20 processors destined for China,
announced on April 9. The company incurred a $4.5 billion charge related to
excess inventory and purchase obligations for the specialized chips, which were
designed primarily for the Chinese market.
Prior to
the export restrictions, H20 product sales totaled $4.6 billion in the first
quarter, and NVIDIA was unable to ship an additional $2.5 billion worth of H20
revenue during the period. The company’s gross margin of 61% would have reached
71.3% excluding the China-related charge.
“The
H20 export ban ended our Hopper data center business in China,” Huang told
investors during an earnings call, describing the $50 billion Chinese AI chip
market as “effectively closed to U.S. industry.”
Strong Performance Across
Other Segments
Despite the
China headwinds, NVIDIA’s other business segments showed robust growth. The
gaming division achieved record revenue of $3.8 billion, up 42% year-over-year
and 48% from the previous quarter, driven by strong sales of the company’s new
Blackwell architecture chips.
The
automotive and robotics division reported 72% annual growth to $567 million,
attributed to increased sales of self-driving car chips and software.
Professional visualization revenue grew 19% to $509 million, boosted by broader
adoption of Ada RTX workstation GPUs.
Net income
for the quarter reached $18.8 billion, or $0.76 per share, compared to $14.9
billion, or $0.60 per share, in the same period last year. Excluding the
H20-related charges and tax impacts, adjusted earnings per share would have
been $0.96.
How High Can NVIDIA Stock
Go? Analyst Outlook Remains Positive
Despite the
China challenges, Wall Street analysts maintain optimistic price targets for
NVIDIA shares. Jefferies reiterated its Buy rating with a $185 price target on
Thursday, citing resolution of previous concerns about Blackwell inventory
issues and noting that multiple hyperscalers are ramping up to 1,000 NVL72
units per week.
Bernstein
Research also maintains its bullish stance on NVIDIA with an Outperform rating
and $185 price target, representing significant upside potential from current
levels. Analyst Stacy Rasgon emphasized that despite the challenges from China
export restrictions, NVIDIA’s valuation has become increasingly attractive,
trading at approximately 25 times forward earnings, near decade-low levels.
DA Davidson
raised its price target to $135 from $120 while maintaining a neutral stance,
acknowledging that uncertainty surrounding NVIDIA’s China business remains a
key factor for the stock’s performance.
NVIDIA Shares Predictions
Table
Analyst
Firm
Rating
Price
Target
Previous
Target
Key
Rationale
Jefferies
Buy
$185
–
Resolution of Blackwell inventory
concerns; hyperscalers ramping to 1,000 NVL72 units weekly
Bernstein
Research
Outperform
$185
–
Attractive valuation at 25x
forward earnings near decade lows; AI sector fears premature
DA
Davidson
Neutral
$135
$120
Mixed earnings results; China
uncertainty remains key stock performance factor
The company
also announced it would pay a quarterly dividend of $0.01 per share on July 3
to shareholders of record as of June 11. During the quarter, NVIDIA spent $14.1
billion on share repurchases and paid $244 million in dividends.
Looking
ahead, NVIDIA expects second-quarter revenue of $45 billion, plus or minus 2%,
with the guidance reflecting an approximately $8 billion loss in H20 revenue
due to export control limitations. The company projects GAAP and non-GAAP gross
margins of 71.8% and 72.0%, respectively, as it works toward achieving mid-70%
gross margins later this year.
NVIDIA Stock Price FAQ
Is Nvidia Stock Expected
to Rise?
Yes, Nvidia
stock is widely expected to rise according to multiple analyst forecasts and
market indicators. The consensus among Wall Street analysts shows strong
bullish sentiment, with 64 analysts giving NVIDIA a consensus rating of Buy.
Out of 42 analysts covering NVIDIA, 37 have rated it a “Strong Buy,”
demonstrating overwhelming confidence in the stock’s upward trajectory.
Is Nvidia Share a Good
Buy?
NVIDIA
shares are considered a strong buy by the majority of analysts, though with
some important caveats. The stock receives overwhelmingly positive ratings from
Wall Street, with 42% of analysts recommending a Strong Buy and 41%
recommending Buy. The average analyst price target of $164 represents about 25%
upside from recent trading levels.
What Is the Nvidia
Forecast for 2025?
NVIDIA’s
2025 forecast shows continued strong growth despite some headwinds from China
export restrictions. For the second quarter of fiscal 2026, the company expects
revenue of $45.0 billion, plus or minus 2%, though this reflects an
approximately $8.0 billion loss in H20 revenue due to export control
limitations.
Does Nvidia Have a Good
Future?
NVIDIA’s
long-term future appears exceptionally promising, driven by its leadership
position in multiple high-growth technology sectors. The company is positioned
at the center of several transformative trends including artificial
intelligence, autonomous driving, and edge computing.
NVIDIA
Corporation (NASDAQ: NVDA) posted record first-quarter revenue of $44.1 billion
on Wednesday, exceeding analyst expectations despite absorbing a $4.5 billion
charge related to new U.S. export restrictions on its China-bound H20 chips.
NVIDIA
shares closed yesterday’s session at $134. In Thursday’s premarket trading,
however, they are up more than 5%, reaching $142, the highest level in three
months. Moreover, NVIDIA shares predictions from two independent analysts
suggest the stock could soon surge by 35%, potentially hitting an all-time high
of $185.
NVIDIA
reported adjusted earnings per share of $0.81, surpassing the $0.93 consensus
estimate, while revenue of $44.06 billion topped the expected $43.31 billion
for a three-month period ended April 27, 2025. However, the company’s guidance
for the current quarter of approximately $45 billion fell short of analyst
projections of $45.9 billion, primarily due to the ongoing impact of China
export controls.
Nvidia CEO Jensen Huang (Reuters).
The
company’s data center division, which includes artificial intelligence chips
and related components, generated $39.1 billion in revenue during the quarter,
representing a 73% increase from the same period last year and accounting for
88% of total revenue. This performance underscored the continued strong demand
for AI infrastructure globally.
“Global
demand for NVIDIA’s AI infrastructure is incredibly strong,” CEO Jensen
Huang said in a statement. “AI inference token generation has surged
tenfold in just one year, and as AI agents become mainstream, the demand for AI
computing will accelerate.”
Large cloud
service providers accounted for just under half of the data center unit’s
revenue, while networking products contributed $5 billion in sales. Chief
Financial Officer Colette Kress noted that Microsoft has “deployed tens of
thousands of Blackwell GPUs and is expected to ramp to hundreds of
thousands” of the company’s GB200 product.
NVIDIA
Q1 FY26 Revenue by Market Platform
Market Platform
Q1 FY26 ($M)
Q4 FY25 ($M)
Q1 FY25 ($M)
Q/Q Growth
Y/Y Growth
Data Center
$39,112
$35,580
$22,563
10%
73%
– Compute
$34,155
$32,556
$19,392
5%
76%
– Networking
$4,957
$3,024
$3,171
64%
56%
Gaming
$3,763
$2,544
$2,647
48%
42%
Professional
Visualization
$509
$511
$427
0%
19%
Automotive
$567
$570
$329
-1%
72%
OEM and
Other
$111
$126
$78
-12%
42%
Total
Revenue
$44,062
$39,331
$26,044
12%
69%
China Export Controls
Create Significant Impact
The
quarter’s results were significantly affected by new U.S. government export
licensing requirements for NVIDIA’s H20 processors destined for China,
announced on April 9. The company incurred a $4.5 billion charge related to
excess inventory and purchase obligations for the specialized chips, which were
designed primarily for the Chinese market.
Prior to
the export restrictions, H20 product sales totaled $4.6 billion in the first
quarter, and NVIDIA was unable to ship an additional $2.5 billion worth of H20
revenue during the period. The company’s gross margin of 61% would have reached
71.3% excluding the China-related charge.
“The
H20 export ban ended our Hopper data center business in China,” Huang told
investors during an earnings call, describing the $50 billion Chinese AI chip
market as “effectively closed to U.S. industry.”
Strong Performance Across
Other Segments
Despite the
China headwinds, NVIDIA’s other business segments showed robust growth. The
gaming division achieved record revenue of $3.8 billion, up 42% year-over-year
and 48% from the previous quarter, driven by strong sales of the company’s new
Blackwell architecture chips.
The
automotive and robotics division reported 72% annual growth to $567 million,
attributed to increased sales of self-driving car chips and software.
Professional visualization revenue grew 19% to $509 million, boosted by broader
adoption of Ada RTX workstation GPUs.
Net income
for the quarter reached $18.8 billion, or $0.76 per share, compared to $14.9
billion, or $0.60 per share, in the same period last year. Excluding the
H20-related charges and tax impacts, adjusted earnings per share would have
been $0.96.
How High Can NVIDIA Stock
Go? Analyst Outlook Remains Positive
Despite the
China challenges, Wall Street analysts maintain optimistic price targets for
NVIDIA shares. Jefferies reiterated its Buy rating with a $185 price target on
Thursday, citing resolution of previous concerns about Blackwell inventory
issues and noting that multiple hyperscalers are ramping up to 1,000 NVL72
units per week.
Bernstein
Research also maintains its bullish stance on NVIDIA with an Outperform rating
and $185 price target, representing significant upside potential from current
levels. Analyst Stacy Rasgon emphasized that despite the challenges from China
export restrictions, NVIDIA’s valuation has become increasingly attractive,
trading at approximately 25 times forward earnings, near decade-low levels.
DA Davidson
raised its price target to $135 from $120 while maintaining a neutral stance,
acknowledging that uncertainty surrounding NVIDIA’s China business remains a
key factor for the stock’s performance.
NVIDIA Shares Predictions
Table
Analyst
Firm
Rating
Price
Target
Previous
Target
Key
Rationale
Jefferies
Buy
$185
–
Resolution of Blackwell inventory
concerns; hyperscalers ramping to 1,000 NVL72 units weekly
Bernstein
Research
Outperform
$185
–
Attractive valuation at 25x
forward earnings near decade lows; AI sector fears premature
DA
Davidson
Neutral
$135
$120
Mixed earnings results; China
uncertainty remains key stock performance factor
The company
also announced it would pay a quarterly dividend of $0.01 per share on July 3
to shareholders of record as of June 11. During the quarter, NVIDIA spent $14.1
billion on share repurchases and paid $244 million in dividends.
Looking
ahead, NVIDIA expects second-quarter revenue of $45 billion, plus or minus 2%,
with the guidance reflecting an approximately $8 billion loss in H20 revenue
due to export control limitations. The company projects GAAP and non-GAAP gross
margins of 71.8% and 72.0%, respectively, as it works toward achieving mid-70%
gross margins later this year.
NVIDIA Stock Price FAQ
Is Nvidia Stock Expected
to Rise?
Yes, Nvidia
stock is widely expected to rise according to multiple analyst forecasts and
market indicators. The consensus among Wall Street analysts shows strong
bullish sentiment, with 64 analysts giving NVIDIA a consensus rating of Buy.
Out of 42 analysts covering NVIDIA, 37 have rated it a “Strong Buy,”
demonstrating overwhelming confidence in the stock’s upward trajectory.
Is Nvidia Share a Good
Buy?
NVIDIA
shares are considered a strong buy by the majority of analysts, though with
some important caveats. The stock receives overwhelmingly positive ratings from
Wall Street, with 42% of analysts recommending a Strong Buy and 41%
recommending Buy. The average analyst price target of $164 represents about 25%
upside from recent trading levels.
What Is the Nvidia
Forecast for 2025?
NVIDIA’s
2025 forecast shows continued strong growth despite some headwinds from China
export restrictions. For the second quarter of fiscal 2026, the company expects
revenue of $45.0 billion, plus or minus 2%, though this reflects an
approximately $8.0 billion loss in H20 revenue due to export control
limitations.
Does Nvidia Have a Good
Future?
NVIDIA’s
long-term future appears exceptionally promising, driven by its leadership
position in multiple high-growth technology sectors. The company is positioned
at the center of several transformative trends including artificial
intelligence, autonomous driving, and edge computing.
