Nvidia's earnings outlook alleviates concerns over scale

LootboxPhobia · 2026-03-03T23:38:33+00:00

Nvidia's earnings report last week showed better-than-expected performance, with projected revenue of $78 billion for the first quarter of fiscal year 2027, alleviating market concerns about its growth slowdown. Analysts noted that this outlook far exceeded expectations, with Wedbush raising its target price to $300, reflecting Nvidia's advantages in supply chain management and network business growth.

LootboxPhobia

2026-03-03 23:38:33

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Investing.com - Nvidia’s performance last week dispelled market concerns that its growth would slow due to its large scale.

The company’s January quarter results exceeded expectations, and it forecasted current quarter revenue to surpass market estimates, with a first-quarter fiscal 2027 revenue guidance of $78 billion.

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Considering Nvidia’s scale, the data center sales in the fourth quarter performed strongly both sequentially and year-over-year, which is particularly noteworthy.

Wedbush analyst said, “We especially highlight the first-quarter fiscal 2027 sales guidance ($78 billion) as the highlight of this earnings call, because we believe this outlook far exceeds previous bullish expectations.”

The day after Nvidia announced its earnings, Wedbush raised its target price by $70 to $300.

The stock is currently valued at about 30 times the estimated earnings per share of $9.97 for fiscal 2028, plus $2.21 per share in net cash.

Supply chain commitments increased from $50.3 billion in the previous quarter to $95.2 billion, giving Nvidia a clear outlook for shipments in the 2027 calendar year.

Wedbush stated that the company took proactive measures to ensure the supply of scarce components such as memory, creating an advantage that is expected to last at least until this year.

Network business revenue also continued to grow faster than GPU revenue, thanks to higher NVLink content and broader adoption of Nvidia’s full-stack products (including switching products), especially in new data centers outside of large cloud service providers.

The U.S. has approved limited exports of H200 chips to China, but China has not yet approved the import of this product. The broker said that considering Nvidia has not fully re-entered the world’s second-largest market, its performance is even more impressive, and if shipments recover, there is potential upside.

Wedbush stated that these results are a positive signal for TSMC, indicating that demand for AI in advanced processes remains strong, and this extends to the broader hardware and component sectors related to data center spending.

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