After weeks of anticipation from Wall Street and Silicon Valley alike, Nvidia (NASDAQ:NVDA) finally unveiled its latest quarterly results, delivering another strong beat fueled by relentless demand for AI infrastructure and Blackwell systems. Yet, despite the blockbuster numbers and stronger-than-expected guidance, NVDA stock slipped 1.5% in after-hours trading as investors weighed sky-high expectations, lingering China concerns, and margins that merely met rather than exceeded forecasts.
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200% short exposure to NVDA with NVDSThe AI chip giant reported adjusted earnings of $1.87 per share, topping expectations by $0.10, while revenue climbed 85% year-over-year to $81.62 billion, beating consensus estimates by $2.65 billion. Record data center revenue reached $75.2 billion, representing a 92% jump from the prior year.
Looking ahead, management projected fiscal second-quarter revenue of $91 billion, plus or minus 2%, ahead of Wall Street expectations of ~$87 billion. Still, Nvidia noted that its outlook does not assume any data center compute revenue contribution from China, a reminder that export restrictions remain a meaningful uncertainty hanging over the story.
Wedbush analyst Daniel Ives, who also stands behind the Dan IVES Wedbush AI Revolution ETF (IVES) and ranks among the top 4% of analysts on TipRanks, hardly appeared concerned by the muted after-hours reaction.
Ives says that Nvidia remains “well-positioned on top of the AI mountain” as the global infrastructure buildout surrounding artificial intelligence continues accelerating. The longtime tech bull believes Wall Street still underestimates the scale of Nvidia’s opportunity during the coming years, particularly as hyperscaler spending continues climbing aggressively.
Ives points toward what he expects could become more than $750 billion in Big Tech AI-related capital expenditures next year, while enterprise and government adoption continue expanding throughout the world. The analyst also believes Nvidia’s influence extends far beyond its own financial results, estimating that every dollar spent on Nvidia hardware generates another eight to ten dollars of spending throughout the broader technology ecosystem.
The analyst made clear that he views Chief Executive Jensen Huang as the single most important voice within AI today. Ives described Huang as having “the best perch and vantage point” to assess enterprise AI demand and the appetite surrounding Nvidia’s chips moving forward.
Overall, Wall Street seems completely hooked on the Nvidia story. NVDA currently boasts a Strong Buy consensus rating backed by 40 Buy ratings against only 1 Hold and 1 Sell recommendation. The Street’s average 12-month price target stands at $281.97, implying 26% upside from current levels. (See NVDA stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.