President Trump made a total of at least $220 million in stock and bond purchases during the first quarter, according to a filing with the Office of Government Ethics. Six of those exchanges included chipmaker Intel Corporation (INTC), which drew attention. However, there was another notable deal in which the President of the United States bought up to $5 million worth of shares in chip giant Nvidia (NVDA).
Additionally, Nvidia received US approval to export H200 advanced AI processors to approximately 10 Chinese companies. A ray of hope emerged when Nvidia CEO Jensen Huang was invited aboard Air Force One to visit China with the president, after the company had to give up on the Chinese market because regulations stopped shipping its AI chips to the country.
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However, China has closed the doors to the deal, as Beijing has refused to approve purchases of Nvidia’s H200 artificial intelligence chips. It looks like the company has to continue giving up the $50 billion Chinese market opportunity.
We’re taking a look at Nvidia right now and releasing its blockbuster first quarter earnings.
About Nvidia Stock
Nvidia has become the most valuable company in the world, driven by its leadership in artificial intelligence and high-performance computing. Its advanced GPUs and AI platforms power data centers, cloud services and cutting-edge applications, positioning the company as a central force in global technology and the driving force of the AI revolution. Nvidia has a huge market capitalization of $5.21 trillion.
Thanks to explosive demand for artificial intelligence chips and record profits, Nvidia stock has held 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 all-time intraday high of $236.54 on May 14, but are down 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 not a strong trading signal. On a forward-adjusted basis, its price-to-earnings (non-GAAP) ratio of 24.10 times is lower than the industry average of 24.66 times.
Nvidia beats Q1 expectations as AI boom drives massive revenue surge
On May 20, Nvidia reported another stellar quarterly earnings. For the first quarter of fiscal 2027 (quarter ended April 26), the company’s revenue increased 85% year over year (year-over-year) to $81.62 billion, higher than the $78.75 billion that Wall Street analysts were expecting. Data center revenue hit a record $75.2 billion, up 92% year-over-year. However, Nvidia shares fell 1.8% intraday on May 21, reportedly because investors were already pricing in upside and profit-taking.
As agent AI becomes commonplace, Nvidia considers itself uniquely positioned in this new phase of AI growth due to its expanding operations. The company faces strong demand for its Blackwell infrastructure and the Vera Rubin platform looks set to be a blockbuster.
Nvidia’s profitability also grew at a considerable pace in the first quarter. Its non-GAAP operating income increased 147% year over year to $53.78 billion. Its non-GAAP EPS rose 140% year over year to $1.87, higher than the $1.77 expected by Street analysts.
During the first quarter, Nvidia returned a record $20 billion (approximately) to shareholders through share buybacks 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). For the second quarter, despite not assuming any computing revenue from the China data center, the company expects its revenue to reach $91 billion, plus or minus 2%.
Wall Street analysts are very optimistic about Nvidia’s future earnings. They expect the company’s EPS to rise 89.9% YoY to $1.88 in Q2 FY 2027. For FY 2027, EPS is projected to rise 74.6% YoY to $7.98, followed by 36.3% growth to $10.88 in FY 2028.
What do analysts think about Nvidia stock?
Following Nvidia’s latest quarterly results, Wall Street analysts have reiterated their positive stances on the stock. Analysts at RBC Capital maintained an “outperform” rating and raised the price target from $250 to $270, citing strong demand for Blackwell and progress on the Rubin architecture on the way.
Analysts at Stifel also maintained a “Buy” rating and raised the price target from $250 to $282. Stifel analysts believe Nvidia’s Vera CPU delivers $20 billion in visible incremental revenue and access to a total addressable market of $200 billion, based on an existing revenue floor of $1 trillion. Analysts at JPMorgan raised the price target from $265 to $280 while maintaining an “Overweight” rating, citing management’s affirmation of expectations for continued sequential growth over this year and next.
Baird analysts see a continued supercycle in data center GPUs, prompting them to maintain an “outperform” rating and raise the price target from $275 to a high of $500.
Nvidia has been in the spotlight on Wall Street for some time now, with analysts giving it an overall consensus rating of “Strong Buy.” Of the 49 analysts rating the stock, a majority of 43 rate it as a “Strong Buy,” three rate it as a “Moderate Buy,” two analysts take a middle-of-the-road approach with a “Hold,” and only one analyst gives it a “Strong Sell” rating. The consensus price target of $296.20 represents a 37.86% upside from current levels. Furthermore, the street’s high price target of $500 indicates an upside of 132.7%.
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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 are for informational purposes only. This article was originally published on Barchart.com
