NVIDIA's stock price target was revised after financial results were announced

“The next industrial revolution has begun,” Jensen Huang, the chief executive of an AI chip maker headquartered in Santa Clara, California, told analysts during a conference call announcing NVIDIA financial results.

“Companies and countries are partnering with NVIDIA to shift the $1 trillion install base of traditional data centers to high-speed computing, build AI factories, which are new types of data centers, and produce artificial intelligence, which is a new product.”

Mr. Huang, who co-founded the company in 1993, said, “AI will bring about significant productivity improvements in almost every industry and help companies expand revenue opportunities while increasing cost and energy efficiency.”

Nvidia's Earnings per share is $6.12So, the analyst'sConsensus forecast $5.60It greatly surpassed. Revenue more than tripled compared to the previous year (262% increase) was 26.40 billion dollars, easily exceeding the market forecast of 24.59 billion dollars.

Data center revenue, including the company's main AI products, increased more than 5 times compared to the previous year, reaching a record high of 22.6 billion dollars, and the Group's gross profit margin expanded to 78.9%.

“From today's information retrieval model, we're moving to a computing model that generates answers and skills,” Huang said. “AI understands context and our intentions, has knowledge, makes inferences, makes plans, and performs tasks.”

NVIDIA said that although shipments of the new Blackwell processor and software systems will not begin until the second half of the year, sales for the current quarter will increase to about 28 billion dollars by an error of 2%.

However, Huang stated that clients “can easily migrate from H100 to H200 to B100,” and added that “Blackwell systems are designed to be backwards compatible.”

“We're trying to fundamentally change how computing works and what computers can do,” he said.

There are definitely skeptics who believe the AI revolution is nothing more than hype, but it's hard to find someone like that on Wall Street.

Analysts responded enthusiastically to NVIDIA's numbers, and one analyst asserted that the group “is a very unique growth company, so investors will continue to support the company's premium evaluation ratio in the future.”

Chris Versace of TheStreet Pro raised Nvidia's target stock price from 1,100 dollars to 1,250 dollars in response to the company's financial results report.

“NVIDIA implemented a 1 to 10 stock split as of 6/7 in order to improve performance and outlook, and announced that dividends after the split will be increased to 0.01 dollars per share,” Versace said.

“If you look at the dividend per share after the stock split, I acknowledge that it looks like a feigned dividend, but if you look at NVIDIA's total number of shares in the future, 1 billion dollars per year will be returned to shareholders compared to 100 million dollars before the stock split,” he added.

“NVIDIA cannot be called a dividend stock, but this move shows confidence in the company's business prospects now that it has passed the initial stages of AI implementation,” he said.

Versace's rapid increase in data center revenue is due to the Nvidia Hopper GPU computing platformIncrease in shipment volumeIt was pointed out that it was reflected.

The platform is used across enterprise and consumer internet companies for training and inference using large-scale language models, recommendation engines, and generative AI applications.

Furthermore, he added that the data center division, which accounts for about 87% of revenue, is “clearly the driving force behind Nvidia's earnings and profits, and it should continue to benefit from increased spending on AI and data centers by major tech companies, etc.”

“We expect demand for AI computing to increase as generative AI is introduced into more consumer internet applications,” he said.