JPMorgan has raised NVIDIA's target stock price from $265 to $280; Jefferies has increased its target from $275 to $300; and Melius Research has lifted its target from $380 to $400. This follows NVIDIA's reported earnings and forecasts exceeding expectations, alongside the announcement of an $80 billion stock repurchase program.
Chip giant NVIDIA reported record sales and profits on Wednesday, driven by a surge in demand for data center computing and the rapid rise of artificial intelligence agents.
For the fiscal quarter ending in April, the company's sales reached $81.6 billion, an 85% increase from the same period last year, and 3.4% higher than the $78.9 billion forecast by analysts surveyed by FactSet. Quarterly net profit was $58.3 billion, more than triple the year-ago figure and 36.5% above the analyst consensus of $42.9 billion.
"Demand is growing exponentially," CEO Jensen Huang stated during a conference call with analysts. "The reason is simple: the era of agentic AI has arrived."
The company also announced two shareholder-friendly initiatives: an $80 billion stock buyback program and an increase in the quarterly cash dividend from $0.01 to $0.25 per share. CFO Colette Kress mentioned on the call that the company plans to return 50% of its free cash flow to shareholders this year.
Comments