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Wall Street Near Unanimous NVIDIA's "Exceptional" Q1 Gives It More Room to Run

By Rich Duprey - May 27, 2021 at 2:29PM

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The beat-and-raise quarter was based on across-the-board market gains.

Wall Street is coalescing around the idea NVIDIA (NVDA 1.73%) is not done yet after the graphics chip designer posted what one analyst called "exceptional" first-quarter results.

While almost every analyst raised their price target for NVIDIA, Deutsche Bank analyst Ross Seymore only nudged his own 4% higher to $600 despite being "pleasantly surprised" by the chipmaker's performance. NVIDIA closed yesterday at $628 per share. Seymore has a hold rating on the stock.

Everyone else seems to think NVIDIA's stock is destined to do much better than that with an average price target of $735 per share, or 17% above where it currently sits. 

Glowing CPU chip.

Image source: Getty Images.

KeyBanc analyst John Vinh, however, was particularly impressed and has a Street high target of $775 per share. He told investors in a research note his overweight rating on the stock would be maintained because of the strength NVIDIA exhibited across its hyperscaler data-center business, gaming, and crypto markets, not to mention how strong its earnings beat was followed by an increase in its guidance.

NVIDIA reported earnings of $3.66 per share on record revenue growth to $5.66 billion compared to Wall Street's consensus of $3.28 per share on $5.41 billion in revenue.

Gaming revenue doubled this past quarter, data-center revenue was up 79%, and CEO Jensen Huang said, "Our partners are launching the largest-ever wave of NVIDIA-powered laptops. Across industries, the adoption of NVIDIA computing platforms is accelerating."

While the semiconductor stock does say it will remain supply constrained heading into the back half of the year, it now sees second-quarter revenue coming in at $6.3 billion, well ahead of analyst forecasts of $5.5 billion.

NVIDIA previously announced it would be effecting a 4-for-1 stock split on June 21.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy.

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