Nvidia stock edged higher in pre-market trading after the AI chip giant delivered stronger-than-expected Q1 Fiscal 2027 results. Investors appeared encouraged by Nvidia’s expanding AI infrastructure opportunity beyond hyperscalers, as the company continues seeing strong demand across enterprise AI, industrial AI, and next-generation data center systems. Following the results, Melius analyst Ben Reitzes raised his price target on Nvidia stock to a Street-high $400 from $380 while maintaining a Buy rating.
Meet Samuel – Your Personal Investing Prophet
NVDS: built for a short position on NVDAIn the quarter, Nvidia reported adjusted earnings per share of $1.87, beating Wall Street estimates of $1.75, while revenue surged 85% year-over-year to $81.6 billion. Nvidia also guided for Q2 revenue of about $91 billion, ahead of analyst expectations.
Why the Analyst Is Getting More Bullish on Nvidia
Reitzes said Nvidia’s latest earnings report helped counter the view that the company can only grow in line with hyperscaler AI spending.
According to the analyst, Nvidia is now expanding beyond large cloud companies into faster-growing AI areas such as enterprise AI, industrial AI, robotics, automotive, and edge computing.
One major takeaway from the earnings report was Nvidia’s new reporting structure, which now separates the business into Hyperscale, ACIE, and Edge Computing segments. Reitzes believes the move highlights how Nvidia’s AI growth is spreading across more markets beyond large cloud companies.
Nvidia’s AI Opportunity Could Keep Growing
Reitzes also pointed to Nvidia’s strong growth outside China. Excluding China, the company’s data center revenue rose 118% year-over-year in Q1, while management guided for another quarter of more than 100% growth.
The analyst also noted that Nvidia continues benefiting from its full AI platform spanning GPUs, CPUs, networking, storage, and memory.
In addition, Reitzes highlighted Nvidia’s upcoming Vera CPU platform and Vera Rubin systems as future growth drivers as AI workloads become larger and more complex.
Is Nvidia Stock Still a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 40 Buys, one Hold, and one Sell assigned in the past three months. Furthermore, the average 12-month Nvidia price target of $286.33 per share implies 28.13% upside potential.
