We're raising our price target on Nvidia after another knockout quarter and guide

An important development from the financial markets: Nvidia reported another blockbuster quarter on Wednesday and issued guidance well above analyst forecasts. The results and conference call reinforced our belief that Nvidia is an essential stock to own during the race to build the best and most profitable AI data centers. Revenue in the company's fiscal 2027 first quarter increased 85% year over year to $81.

62 billion, outpacing the $78. 89 billion consensus, according to estimates compiled by data provider LSEG. Adjusted earnings per share (EPS) increased 140% to $1.

Economic Details

98, also exceeding the consensus estimate of $1. Shares fell a little more than 1% in after-hours trading despite the beat and strong guide. If the move late Wednesday holds throughout Thursday's regular session, it would not tell the full Nvidia story.

The stock hasn't traded higher in the session after reporting earnings in a year, since the April quarter of 2025. Still, the stock is up more than 60% over this time period. For 2026, shares are up roughly 20% based on Wednesday's closing price.

NVDA 1Y mountain Nvidia's stock performance over the past 12 months. Bottom line It was another impressive quarter from Nvidia. Revenue beat analyst estimates by almost $3 billion, and its revenue guidance for the current quarter is roughly $4 billion above the consensus.

Analyst Views

The company keeps posting unprecedented growth figures for its size despite having zero computer revenue contribution from China, a region where sales are not expected any time soon. "Demand has gone parabolic," CEO Jensen Huang said on the earnings call, thanks to the rise of new artificial intelligence systems capable of taking actions on behalf of users without human intervention. Known as agentic AI, these systems produce a lot of tokens, which are the basic unit of data in AI computing.

"Tokens are now profitable, so model makers are in a race to produce more. In the AI era, compute capacity is revenue and profits," Huang said. AI runs on Nvidia's platform, and the company's quarterly figures continue to blow past what everyone anticipates due to huge sums of money invested annually to support AI infrastructure buildouts.

A lot of the money is coming from the so-called hyperscalers — Alphabet , Microsoft , Meta and Amazon — that operate vast networks of data centers. But they are not the only source. During the earnings call, CFO Collete Kress said that with analysts forecasting hyperscaler capital expenditures to exceed $1 trillion in 2027, AI infrastructure spending is on track to reach $3 trillion to $4 trillion annually by the end of the decade.

Financial markets are tracking the development closely as investors assess the likely impact.