May 29 – Nvidia has issued a revenue forecast of approximately $45 billion for its fiscal second quarter, acknowledging an anticipated $8 billion impact due to U.S. export restrictions on its H20 AI chips to China. Despite this significant challenge, the company’s outlook remains robust, reflecting strong global demand for its AI technologies.
For the fiscal first quarter, Nvidia posted $44 billion in revenue, up 69% year-on-year, and adjusted earnings of $0.81 per share. Data center sales led the way at $39 billion, a 73% increase, driven by rapid adoption of Blackwell GPUs and growing AI inference workloads.
CFO Colette Kress said the Blackwell NVL72 ramp was the fastest in company history and that networking revenue climbed 64% sequentially to $5 billion. Spectrum-X now annualizes over $8 billion in sales, with major cloud customers on board. Gaming revenue hit $3.8 billion, up 48% from the prior quarter, while automotive and robotics reached $567 million, up 72% year-on-year.
Kress warned that losing access to China’s AI accelerator market, expected to approach $50 billion, could benefit non-U.S. rivals. CEO Jensen Huang noted that sovereign investments in AI infrastructure continue to accelerate worldwide.
Looking ahead, Nvidia expects modest sequential growth across all platforms and gross margins to improve toward the mid-70 percent range later this year.
Based on the one year price targets offered by 51 analysts, the average target price for NVIDIA Corp is $163.77 with a high estimate of $235.92 and a low estimate of $100.00. The average target implies a upside of +21.48% from the current price of $134.81.
Based on GuruFocus estimates, the estimated GF Value for NVIDIA Corp in one year is $265.22, suggesting a upside of +96.74% from the current price of $134.81.
This article first appeared on GuruFocus.