Next Stop $1400? Analysts Boost Nvidia Price Targets After Another Earnings Beat

Nvidia's first quarter results showed adjusted earnings per share (EPS) tallied $6.12 on revenue of $26 billion, a jump of 461% and 262%, respectively, from a year ago.

Data center sales, which include the group's key AI offerings, surged more than fivefold from a year earlier to a record $22.6 billion, while group gross margin expanded to 78.9%.

Perhaps more importantly, Nvidia said current-quarter revenue would rise to around $28 billion, with a 2% margin for error, even as it said its new Blackwell system of processors and software wouldn't start shipping until the back half of the year.

BofA Securities increased its price target on shares of Nvidia to $1,320 from the previous $1,100, while reaffirming a Buy rating on the stock. The firm's analyst highlighted Nvidia's leading position in the AI accelerator market, which is expected to grow significantly in the coming years.

NVIDIA's upcoming next-generation Blackwell product and the growth of its networking solutions, such as Spectrum-X, are anticipated to contribute to the company's continued success. The ramp-up of Spectrum-X is expected to generate multi-billion dollars within a year. The demand for Nvidia's products is outstripping supply, a trend that may continue through most of the calendar year 2025, according to Nvidia, noted the analyst.

BofA has significantly raised its projected earnings per share (EPS) for Nvidia by 12%, 21%, and 21% for fiscal years 2025, 2026, and 2027, respectively. The new EPS forecasts are $25.76, $35.90, and $44.37, respectively.

Citi raised the firm's price target on Nvidia to $1,260 from $1,030 and keeps a Buy rating on the shares. The company reported another "beat and raise" quarter with the 10:1 stock split a positive surprise, the analyst tells investors in a research note.

More importantly, management comments on Hopper to Blackwell platform transition in the near term and every $1 in artificial intelligence Nvidia investment to generate $5 in CSP GPU monetization long-term relieved investors, says Citi.

Morgan Stanley analyst Joseph Moore, who took his Nvidia price target $160 higher to $1,160 a share while affirming his buy rating, also noted the group's ability to avoid gaps in demand ahead of the Blackwell debut.

"The 'shock and awe' upside quarter this time last year saw the company guide revenue to $10 billion, and the company is now guiding to $28 billion," he said.

"That's happening during a quarter where there could have easily been a pause in demand as H200 ramps in the current quarter and Blackwell volume starts in the quarter after that," he added.

"Demand side signals from customers and front line sales seem considerably more optimistic than supply chain or lead time would indicate," Moore said.

Bernstein analyst Stacy Rasgon, who added $300 to his Nvidia price target, taking it to $1,300 per share and rating the stock as outperform, adds that Nvidia stock remains relatively inexpensive "with a narrative that is clearly nowhere near its end, and likely nowhere near its peak."

So Mooers, do you continue to be bullish on Nvidia? What do you think the target price for Nvidia will be in the next 12 months?

Source: Investing, The Fly, Yahoo Finance, The Street