Nvidia reported impressive financial results for the first fiscal quarter of 2027, with revenues of $81.62 billion surpassing analyst expectations of $78.86 billion, and adjusted earnings of $1.87 per share exceeding the forecast of $1.76.
The growth was driven by strong sales of its Grace Blackwell rack-scale system, but the company's strategic push into the CPU market is expected to significantly enhance its growth trajectory. CEO Jensen Huang highlighted the Vera CPU as a 'major new growth driver' with a potential $200 billion revenue opportunity.
The firm anticipates $20 billion in standalone Vera CPU revenue for fiscal year 2027, with key customers including Anthropic, OpenAI, and Oracle. Despite a 0.8% decline in stock price post-earnings, analysts remain bullish, with several firms issuing buy ratings and raising price targets.
Bank of America analyst Vivek Arya set a price target of $350, suggesting a 57% upside, while Citi's Atif Malik and JPMorgan's Harlan Sur also expressed confidence in Nvidia's growth potential in the CPU market. Overall, the consensus among analysts is that Nvidia's advancements in CPU technology and its strong market position in AI will drive substantial future revenue growth