Please ensure Javascript is enabled for purposes of website accessibility

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

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NVIDIA Corporation Stock Quote
NVIDIA Corporation
NVDA
$190.32 (1.73%) $3.23
Deutsche Bank Stock Quote
Deutsche Bank
DB
$9.15 (-2.35%) $0.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.