Nvidia Stock Is Surging Thursday: What's Fueling The Move?

NVIDIA Corp NVDA shares are rising Thursday after the company beat expectations for the first quarter, boosted by a continued acceleration of its data center business. Multiple analysts reiterated Buy ratings or lifted price targets following the print.

Q1 Earnings: Nvidia reported first-quarter revenue of $44.06 billion, beating analyst estimates of $43.21 billion. The company reported adjusted earnings of 81 cents. Excluding the charges related to restrictions on chip sales to China, adjusted earnings was 96 cents per share, which was stronger than analysts were anticipating, according to Benzinga Pro.

Total revenue was up 69% on a year-over-year basis. Here’s a breakdown of revenue by segment:

• Data center revenue: $39.1 billion, up 73%

• Gaming & AI PC revenue: $3.8 billion, up 42%

• Professional Visualization revenue: $509 million, up 19%

• Automotive & Robotics revenue: $567 million, up 72%

Nvidia said it will pay its next quarterly cash dividend of one cent per share on July 3 to shareholders of record as of June 11.

“Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation,” said Jensen Huang, founder and CEO of Nvidia.

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Guidance: Nvidia forecasted second-quarter revenue of $45 billion, plus or minus 2%, versus Benzinga Pro estimates of $45.78 billion. The company noted that its outlook reflects a loss of approximately $8 billion in H20 revenue due to the export control limitations.

Huang stressed the importance of the Chinese market on a conference call following the company’s quarterly results. The Nvidia CEO told investors and analysts that whoever wins China will be positioned to lead globally.

Analysts React To Q1: Multiple analysts reiterated Buy ratings on Nvidia following the print with some raising price targets ranging from $160 to $200.

Wedbush’s Dan Ives predicted that Nvidia is on a path to a $4 trillion market cap, eventually reaching $5 trillion as the company benefits from increasing AI spend over the coming years. He noted that the AI chip giant delivered another “robust” quarter with “solid” guidance.

Deepwater’s Gene Munster said Nvidia’s core business is on fire and “off the charts good.” He highlighted impressive growth when excluding the impacts of the China chip restrictions.

“If you back out the impact of the curbs, YoY revenue growth in April would have been 79% (reported 69%). Guide for July would have been 76% (actual guide with curbs 50%). That fractional decline of revenue growth quarter over quarter off of a much bigger base is impressive, and the latest evidence that the company’s growth will be higher for longer,” Munster said.

NVDA Price Action: Nvidia shares were up 5.55% at $142.34 at the time of publication Thursday, according to Benzinga Pro.

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