Nvidia last week delivered quarterly results that challenge the view that its growth would slow under the burden of sheer scale. The company topped estimates for the January quarter and issued revenue guidance for the current fiscal quarter that exceeded market expectations, setting first-quarter fiscal 2027 revenue guidance at $78 billion.
Data-center sales were a standout, rising both sequentially and year over year, an outcome made more notable by Nvidia's already-large revenue base. Wedbush analysts highlighted the guidance figure, saying, "We'd call out FQ1'27 sales guidance ($78B) in particular as being the highlight of the call, given we believe this outlook was well in excess of prior buy-side expectations."
In response to the results, Wedbush raised its price target the day after earnings by $70, taking it to $300. The firm's coverage noted valuation metrics that place the shares at roughly 30 times Nvidia's fiscal 2028 earnings estimate of $9.97 per share, plus $2.21 per share in net cash.
Visibility into future shipments expanded substantially after supply chain commitments jumped to $95.2 billion from $50.3 billion in the prior quarter. That level of commitments provides the company with shipment visibility through calendar 2027. Wedbush attributed some of this strength to Nvidia's proactive approach to securing constrained components such as memory, a move the brokerage said has created an advantage it expects to persist at least through this year.
Revenue from networking continued to grow faster than GPU sales, the company said, supported by higher NVLink content and wider adoption of Nvidia's full-stack offerings. The traction for switching products and other networking elements was particularly apparent in new data centers beyond the hyperscale cloud providers.
On the international front, the United States has approved a limited number of H200 shipments to China, but China has not yet cleared imports of the product. Wedbush noted that Nvidia's strong performance is more striking given the company has not fully reentered the world's second-largest market, suggesting there is potential upside if shipments to China resume.
Analysts also viewed the results as a positive signal for Taiwan Semiconductor Manufacturing Company, saying AI-driven demand for advanced processes remains intact. The brokerage extended that view to the broader hardware and components complex tied to data-center spending, implying that supplier demand for advanced semiconductors and related components remains healthy.
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