How High Can Nvidia Stock Price Go? Strong NVDA Earnings and New $185 Share Predictions ⋅ Crypto World Echo
NVIDIACorporation (NASDAQ: NVDA) posted record first-quarter revenue of $44.1 billionon Wednesday, exceeding analyst expectations despite absorbing a $4.5 billioncharge related to new U.S. export restrictions on its China-bound H20 chips.
NVIDIAshares closed yesterday’s session at $134. In Thursday’s premarket trading,however, they are up more than 5%, reaching $142, the highest level in threemonths. Moreover, NVIDIA shares predictions from two independent analystssuggest the stock could soon surge by 35%, potentially hitting an all-time highof $185.
NVIDIA News: NVDA ReportsRecord Q1 Revenue Despite $4.5 Billion China Export Hit
NVIDIAreported adjusted earnings per share of $0.81, surpassing the $0.93 consensusestimate, while revenue of $44.06 billion topped the expected $43.31 billionfor a three-month period ended April 27, 2025. However, the company’s guidancefor the current quarter of approximately $45 billion fell short of analystprojections of $45.9 billion, primarily due to the ongoing impact of Chinaexport controls.
Thecompany’s data center division, which includes artificial intelligence chipsand related components, generated $39.1 billion in revenue during the quarter,representing a 73% increase from the same period last year and accounting for88% of total revenue. This performance underscored the continued strong demandfor AI infrastructure globally.
“Globaldemand for NVIDIA’s AI infrastructure is incredibly strong,” CEO JensenHuang said in a statement. “AI inference token generation has surgedtenfold in just one year, and as AI agents become mainstream, the demand for AIcomputing will accelerate.”
Large cloudservice providers accounted for just under half of the data center unit’srevenue, while networking products contributed $5 billion in sales. ChiefFinancial Officer Colette Kress noted that Microsoft has “deployed tens ofthousands of Blackwell GPUs and is expected to ramp to hundreds ofthousands” of the company’s GB200 product.
NVIDIAQ1 FY26 Revenue by Market Platform
China Export ControlsCreate Significant Impact
Thequarter’s results were significantly affected by new U.S. government exportlicensing requirements for NVIDIA’s H20 processors destined for China,announced on April 9. The company incurred a $4.5 billion charge related toexcess inventory and purchase obligations for the specialized chips, which weredesigned primarily for the Chinese market.
Prior tothe export restrictions, H20 product sales totaled $4.6 billion in the firstquarter, and NVIDIA was unable to ship an additional $2.5 billion worth of H20revenue during the period. The company’s gross margin of 61% would have reached71.3% excluding the China-related charge.
“TheH20 export ban ended our Hopper data center business in China,” Huang toldinvestors during an earnings call, describing the $50 billion Chinese AI chipmarket as “effectively closed to U.S. industry.”
Strong Performance AcrossOther Segments
Despite theChina headwinds, NVIDIA’s other business segments showed robust growth. Thegaming division achieved record revenue of $3.8 billion, up 42% year-over-yearand 48% from the previous quarter, driven by strong sales of the company’s newBlackwell architecture chips.
Theautomotive and robotics division reported 72% annual growth to $567 million,attributed to increased sales of self-driving car chips and software.Professional visualization revenue grew 19% to $509 million, boosted by broaderadoption of Ada RTX workstation GPUs.
Net incomefor the quarter reached $18.8 billion, or $0.76 per share, compared to $14.9billion, or $0.60 per share, in the same period last year. Excluding theH20-related charges and tax impacts, adjusted earnings per share would havebeen $0.96.
How High Can NVIDIA StockGo? Analyst Outlook Remains Positive
Despite theChina challenges, Wall Street analysts maintain optimistic price targets forNVIDIA shares. Jefferies reiterated its Buy rating with a $185 price target onThursday, citing resolution of previous concerns about Blackwell inventoryissues and noting that multiple hyperscalers are ramping up to 1,000 NVL72units per week.
BernsteinResearch also maintains its bullish stance on NVIDIA with an Outperform ratingand $185 price target, representing significant upside potential from currentlevels. Analyst Stacy Rasgon emphasized that despite the challenges from Chinaexport restrictions, NVIDIA’s valuation has become increasingly attractive,trading at approximately 25 times forward earnings, near decade-low levels.
DA Davidsonraised its price target to $135 from $120 while maintaining a neutral stance,acknowledging that uncertainty surrounding NVIDIA’s China business remains akey factor for the stock’s performance.
NVIDIA Shares PredictionsTable
The companyalso announced it would pay a quarterly dividend of $0.01 per share on July 3to shareholders of record as of June 11. During the quarter, NVIDIA spent $14.1billion on share repurchases and paid $244 million in dividends.
Lookingahead, NVIDIA expects second-quarter revenue of $45 billion, plus or minus 2%,with the guidance reflecting an approximately $8 billion loss in H20 revenuedue to export control limitations. The company projects GAAP and non-GAAP grossmargins of 71.8% and 72.0%, respectively, as it works toward achieving mid-70%gross margins later this year.
NVIDIA Stock Price FAQ
Is Nvidia Stock Expectedto Rise?
Yes, Nvidiastock is widely expected to rise according to multiple analyst forecasts andmarket indicators. The consensus among Wall Street analysts shows strongbullish sentiment, with 64 analysts giving NVIDIA a consensus rating of Buy.Out of 42 analysts covering NVIDIA, 37 have rated it a “Strong Buy,”demonstrating overwhelming confidence in the stock’s upward trajectory.
Is Nvidia Share a GoodBuy?
NVIDIAshares are considered a strong buy by the majority of analysts, though withsome important caveats. The stock receives overwhelmingly positive ratings fromWall Street, with 42% of analysts recommending a Strong Buy and 41%recommending Buy. The average analyst price target of $164 represents about 25%upside from recent trading levels.
What Is the NvidiaForecast for 2025?
NVIDIA’s2025 forecast shows continued strong growth despite some headwinds from Chinaexport restrictions. For the second quarter of fiscal 2026, the company expectsrevenue of $45.0 billion, plus or minus 2%, though this reflects anapproximately $8.0 billion loss in H20 revenue due to export controllimitations.
Does Nvidia Have a GoodFuture?
NVIDIA’slong-term future appears exceptionally promising, driven by its leadershipposition in multiple high-growth technology sectors. The company is positionedat the center of several transformative trends including artificialintelligence, autonomous driving, and edge computing.
This article was written by Damian Chmiel at www.financemagnates.com.
