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 trades included chipmaker Intel Corporation (INTC), which grabbed eyeballs. However, there was another notable deal in which the U.S. President bought up to $5 million in shares of chip behemoth Nvidia (NVDA).
Also, Nvidia received U.S. approval to export advanced H200 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 forgo the Chinese market because regulations halted the shipment of its AI chips to the country.
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However, China has shut its doors on the deal, as Beijing has refused to approve purchases of Nvidia's H200 AI chips. It looks like the company has to continue to forgo the $50 billion Chinese market opportunity.
We look into Nvidia at this juncture, post its blockbuster Q1 earnings.
About Nvidia Stock
Nvidia has become the world’s most valuable company, fueled by its leadership in AI 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 engine of the AI revolution. Nvidia boasts a massive market capitalization of $5.21 trillion.
Based on the explosive demand for AI chips and record-breaking earnings, Nvidia’s stock has been holding up well on Wall Street. Over the past 52 weeks, the stock has gained 63.65%, and it is up 15.21% year-to-date (YTD). Nvidia’s shares had reached an all-time intraday high of $236.54 on May 14, but are down 9.17% from that level.
www.barchart.com Nvidia’s stock has a 14-day relative strength index (RSI) of 53.26, which indicates modest bullish momentum but no 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 Crushes 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 (YOY) to $81.62 billion, which was higher than the $78.75 billion that Wall Street analysts had expected. Data center revenue reached a record of $75.20 billion, up 92% YOY. However, Nvidia’s stock dropped 1.8% intraday on May 21, supposedly due to investors already pricing in the upside and profit-taking.
As agentic AI becomes mainstream, Nvidia considers itself to be uniquely positioned in this new phase of AI growth because of its sprawling operations. The company faces solid demand for its Blackwell infrastructure, and the Vera Rubin platform seems set to be a blockbuster.
Nvidia’s profitability also grew at a hefty pace in Q1. Its non-GAAP operating income increased by 147% annually to $53.78 billion. Its non-GAAP EPS rose 140% YOY 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 repurchases and dividend payments. It raised 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 Data Center compute revenue from China, the company expects its revenue to reach $91 billion, plus or minus 2%.
Wall Street analysts are robustly optimistic about Nvidia’s future earnings. They expect the company’s EPS to climb by 89.9% YOY to $1.88 for Q2 FY2027. For fiscal 2027, EPS is projected to surge 74.6% annually to $7.98, followed by 36.3% growth to $10.88 in fiscal 2028.
What Do Analysts Think About Nvidia’s Stock?
Following Nvidia’s latest quarterly results, Wall Street analysts have reiterated their positive stances on the stock. RBC Capital analysts maintained an “Outperform” rating and raised the price target from $250 to $270, citing robust Blackwell demand and the Rubin architecture's ramp-up on track.
Analysts at Stifel also kept a “Buy” rating and raised the price target from $250 to $282. Stifel analysts believe Nvidia’s Vera CPU offers $20 billion in visible incremental revenue and access to a $200 billion total addressable market, building upon an existing $1 trillion revenue floor. JPMorgan analysts raised the price target from $265 to $280 while maintaining an “Overweight” rating, citing management's affirmation of expectations for continued sequential growth through this year and into next year.
Baird analysts see a continuing super-cycle in data center GPUs, which led them to maintain an “Outperform” rating and raise the price target from $275 to a Street-high of $500.
Nvidia has been in the spotlight on Wall Street for some time now, with analysts awarding it a consensus “Strong Buy” rating overall. Of the 49 analysts rating the stock, a majority of 43 rate it a “Strong Buy,” three rate it a “Moderate Buy,” two analysts take the 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 37.86% upside from current levels. Moreover, the Street-high price target of $500 indicates a 132.7% upside.
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www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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