TLDR
- NVIDIA posted record Q1 FY2027 revenue of $81.6 billion, up 85% year-over-year, beating Wall Street estimates of ~$78.9 billion.
- Data Center revenue hit $75.2 billion, up 92% YoY, with demand split roughly evenly between hyperscalers and enterprise/sovereign AI customers.
- Q2 revenue guidance came in at ~$91 billion, even excluding China data center revenue due to export control uncertainty.
- The board approved an $80 billion buyback and raised the quarterly dividend from $0.01 to $0.25 per share.
- NVDA trades at ~26.2x forward earnings — below the semiconductor sector median of ~34x — and carries an average analyst price target of ~$303.
NVIDIA (NVDA) just delivered its best quarter on record, yet the stock slipped after earnings. At around $215, the market’s reaction left a lot of investors scratching their heads.
NVDA opened at $215.33 on Monday, down from its all-time high of $236.54 set on May 14. Over the past 12 months, the stock is still up roughly 65%.
Q1 FY2027 results, released May 20, showed total revenue of $81.62 billion. That’s an 85.2% jump year-over-year and above analyst consensus of around $78.42 billion. EPS came in at $1.87, beating estimates of $1.76.
Data Center revenue led the charge at $75.2 billion — up 92% from the same period last year. Hyperscalers and the AI cloud, industrial, and enterprise segment each contributed about half of that figure.
Free cash flow for the quarter was approximately $49 billion. Non-GAAP gross margin held at 75%, and return on equity clocked in at 96.94%.
Buyback, Dividend, and What Comes Next
The board signed off on an $80 billion share repurchase plan and raised the quarterly dividend from $0.01 to $0.25 per share. The dividend will be paid June 26 to shareholders of record as of June 4. That marks 14 consecutive years of dividend growth.
Q2 guidance was set at approximately $91 billion in revenue, plus or minus 2%. That guidance excludes China data center compute revenue, reflecting ongoing export control uncertainty.
Total supply commitments, including inventory prepayments, reached $145 billion.
Roadmap and Valuation
Blackwell is already NVIDIA’s fastest-ramping product generation. The Vera Rubin platform is set to follow in the second half of 2026. Beyond that, Reuters reported a next-generation architecture called Feynman is planned for 2028.
CEO Jensen Huang introduced the Vera CPU, described as the first processor purpose-built for agentic AI workloads. NVIDIA sees that as a play on a roughly $125 billion CPU market opportunity by 2030.
NVIDIA also announced a partnership with Kawasaki Heavy Industries on robotics systems powered by physical AI.
At roughly 26.2x forward earnings, NVDA trades at a discount to the semiconductor sector median of around 34x. Broadcom sits closer to 50x forward earnings. NVDA’s PEG ratio stands at 0.57.
Danica Pension increased its NVIDIA stake by 5% in Q4, bringing total holdings to 2.81 million shares. NVIDIA is now that fund’s largest position at about 7.5% of its portfolio, valued at $523 million.
Institutional investors and hedge funds collectively own 65.27% of NVDA stock. Analysts hold a consensus “Buy” rating with an average 12-month price target of $303.27, implying roughly 40% upside from current levels.
Truist raised its target to $307, TD Cowen moved to $275, and Needham lifted its target to $270 following the earnings release.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Be the first to comment