Nvidia (NVDA) released its fiscal Q1 2025 earnings earlier this week, impressing markets with another extraordinary report. A $200 billion surge in market cap on Thursday alone catapulted Nvidia to heights exceeding 1.5 times Intel’s (INTC) valuation. The company’s meteoric rise has seen its market cap ascend to over $2.5 trillion, dwarfing its $1 trillion milestone just last year and surging past $2 trillion earlier this year.
Responding to this stratospheric growth, Nvidia announced a 10-for-1 stock split, propelled by a 25-fold rise in shares over the last five years. As the sole “Magnificent 7” company boasting triple-digit growth in its topline, Nvidia exemplifies a stellar success story in the tech world.
Unveiling Nvidia’s Stellar Earnings Triumph
Market analysts, including Julian Emanuel of Evercore ISI, had anticipated Nvidia’s dominance in both earnings and revenue reporting. This anticipation stems from the company consistently outperforming its internal and analysts’ forecasts, a trend characteristic of Nvidia’s earning prowess.
In its fiscal Q1 earnings, Nvidia revealed revenues of $26.04 billion, surpassing analyst predictions of $24.65 billion. Earnings per share (EPS) stood at $6.12, markedly higher than the projected $5.59. Forecasts for the current quarter indicate revenue reaching $28 billion, outstripping the conservative $26.7 billion estimated by analysts.
AI Expansion Sparks Growth Surge
Nvidia allayed concerns over its growth trajectory, particularly with the advent of Blackwell chips. CEO Jensen Huang’s assurance that Blackwell chip revenue would materialize in 2024 provided an optimistic outlook. Noteworthy AI initiatives by tech giants like Meta Platforms and Tesla, fuelled by increased AI capex, are projected to bolster Nvidia’s position further.
Cloud providers are witnessing significant returns on their AI investments, with Nvidia’s CFO Colette Kress emphasizing a remarkable 5x GPU hosting revenue return over four years for every dollar spent on NVIDIA AI infrastructure.
The company faces amplified demand for its AI chips as Big Tech and thousands of startups scramble to secure them amidst the AI craze.
Projections for NVDA Stock
Post-earnings, analysts rushed to revise their target prices for NVDA, amplifying the stock’s trajectory. Benchmark Analyst Cody Acree and Bank of America’s Vivek Arya incremented their target prices to $1,320, reflecting the industry’s euphoria surrounding Nvidia’s potential.
Rosenblatt’s target price of $1,400 prevails as the Street-high, a whopping 33% above recent closing prices. With a unanimous “Strong Buy” consensus from analysts, Nvidia’s growth narrative captivates Wall Street.
Looking Ahead for Nvidia Stock
Nvidia’s relentless wave of achievements leaves onlookers in awe, with milestones looming on the horizon. Anticipate the company reaching a $3 trillion market cap and potentially surpassing Microsoft (MSFT) to crown itself the world’s largest corporation.
Trading at a next 12 months (NTM) price-to-earnings multiple near 40x, Nvidia ranks second among the “Magnificent 7” stocks. Its robust growth trajectory, firmly entrenched amid the AI investment boom, shows no signs of fading, with negligible competition threatening its dominance.