TLDR
- Nvidia posted Q1 EPS of $1.87, beating estimates of $1.76, with revenue of $81.62 billion — up 85.2% year over year.
- The stock fell 1.8% after earnings despite the beat, and was trading around $219–$220 in Friday premarket.
- Nvidia’s forward P/E has dropped to just over 22x, cheaper than AMD at 47x and Intel at over 95x.
- The company announced an $80 billion share buyback and raised its quarterly dividend to $0.25 from $0.01.
- 93% of analysts covering Nvidia have a Buy rating, with an average price target of around $294–$298.
Nvidia reported one of the strongest quarters in its history on Wednesday, May 20th — and the market shrugged.
The company posted earnings per share of $1.87, beating the $1.76 Wall Street consensus. Revenue hit $81.62 billion, clearing the $78.42 billion estimate. That revenue figure was up 85.2% compared to the same quarter last year.
Despite that, the stock fell 1.8% in the session following the report. By Friday premarket, Nvidia was trading at around $219.51–$220.08 — still down from where it started the week.
The muted reaction has left some analysts puzzled. Benchmark Research analyst Cody Acree raised his price target to $335 from $250, and put it bluntly: investors have gotten so used to Nvidia outperforming that a blowout quarter barely moves the needle anymore.
“Investors have simply become increasingly complacent in their expectations of Nvidia’s outsized execution, making almost any degree of outperformance look like normal course business rather than a catalyst for a positive re-rating,” Acree wrote.
The silver lining? Nvidia now looks cheaper than it has in a while.
Valuation Looks More Attractive After Selloff
With the stock trading lower, Nvidia’s forward price-to-earnings ratio has fallen to just over 22x, according to FactSet. That compares favorably to AMD at nearly 47x and Intel at over 95x.
Barron’s had previously called Nvidia a bargain at around $226 with a forward P/E of 26x. At current levels, that argument gets stronger.
The company is also rewarding shareholders directly. Nvidia announced an $80 billion share repurchase program — equivalent to about 1.5% of outstanding stock — and raised its quarterly dividend from $0.01 to $0.25 per share. The dividend will be paid on June 26th, with a record date of June 4th.
Return on equity stands at 110.48% and net margin at 62.97%, according to the latest filing.
Wall Street Still Bullish
Analyst sentiment remains firmly positive. Of all the analysts covering Nvidia, 93% have a Buy recommendation or equivalent. The average price target now sits at around $294–$298, well above current trading levels.
Raymond James reiterated a Strong Buy with a $330 target. Wolfe Research and TD Cowen both set $275 targets. Seaport Research Partners was the outlier, raising their target but keeping a Sell rating.
Institutional interest is also picking up. Torren Management LLC opened a new position in Nvidia worth approximately $1.86 million in Q4. M&T Bank Corp increased its stake by 8.6% to over 3.6 million shares. Eagle Wealth Advisors initiated a new position worth $13 million.
Nvidia’s 52-week range runs from $129.16 to a high of $236.54, and the stock’s 200-day moving average sits at $188.87.
The company’s market cap is currently $5.32 trillion.
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