Nvidia stock edged higher in pre-market trading Wednesday after the AI chip maker delivered a stronger-than-expected Q1 Fiscal 2027 earnings report.
Revenue came in at $81.6 billion, up 85% year-over-year, clearing the $78.7 billion analyst consensus. Adjusted EPS of $1.87 beat estimates of $1.75.
The stock was trading around $223.47 before the open, up roughly 1.30% on the day.
For Q2, Nvidia guided revenue to approximately $91 billion, ahead of what analysts had penciled in. Adjusted gross margin guidance of 75% and operating expenses of $8.3 billion also came in above consensus.
Following the results, Melius Research analyst Ben Reitzes raised his price target to $400 — a new Street-high — up from $380, while keeping a Buy rating in place.
Reitzes said the earnings report pushed back against the idea that Nvidia’s growth is tied exclusively to what hyperscalers spend on AI infrastructure.
The analyst pointed to Nvidia’s new reporting structure as a key takeaway. The company now breaks its business into three segments: Hyperscale, ACIE, and Edge Computing.
Reitzes sees that restructuring as evidence that Nvidia’s AI growth is spreading into enterprise AI, industrial AI, robotics, automotive, and edge computing — markets that tend to grow faster than traditional cloud spend.
Excluding China, Nvidia’s data center revenue rose 118% year-over-year in Q1. Management guided for another quarter of more than 100% growth on that same basis.
Reitzes also flagged Nvidia’s full-stack AI platform — spanning GPUs, CPUs, networking, storage, and memory — as a durable competitive edge.
Stifel also raised its price target after the results, moving from $250 to $282 while maintaining a Buy rating.
The firm introduced fiscal year 2029 estimates alongside the upgrade. Stifel highlighted Nvidia’s upcoming Vera CPU platform as offering incremental revenue visibility of $20 billion and a total addressable market of $200 billion.
Stifel said it believes Nvidia operates in markets with a combined addressable opportunity exceeding $100 billion exiting 2025, with a longer-term ceiling that could top $1 trillion.
The firm’s near-term growth outlook centers on high-performance computing, hyperscale and cloud data centers, and enterprise and edge computing.
Reitzes separately pointed to the Vera Rubin systems as another forward growth driver as AI workloads grow in scale and complexity.
Nvidia’s gross profit margin currently stands at 71%, with the company having delivered a 70% stock return over the past year, according to InvestingPro data.
Wall Street’s consensus across 40 Buy ratings, one Hold, and one Sell gives Nvidia a Strong Buy. The average 12-month price target sits at $286.33.
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