Shares of chip maker Nvidia (NASDAQ:NVDA) gained in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2025 and announced a ten-for-one forward stock split starting June 7, 2024. Earnings per share came in at $6.12, which beat analysts’ consensus estimate of $5.60 per share. Interstingly, Nvidia has only missed expectations once since August 2020.
In addition, sales increased by 262.2% year-over-year, with revenue hitting $26.04 billion. This beat analysts’ expectations of $24.65 billion and was mainly driven by a 427% jump in Data Center revenue, which came in at $22.6 billion.
Looking forward, management now expects revenue for Q2 2025 to be $28 billion (+/- 2%). For reference, analysts were expecting $26.84 billion in revenue.
Investor Sentiment for NVDA Stock Is Currently Negative
Something worth noting is that the sentiment among TipRanks investors has become negative. Out of the 735,028 portfolios tracked by TipRanks, 18.8% hold NVDA stock. In addition, the average portfolio weighting allocated towards NVDA among those who do have a position is 13.21%. This suggests that investors of the company are very confident about its future.
However, in the last 30 days, 1.4% of those holding the stock decreased their positions. As a result, the stock’s sentiment is below the sector average, as demonstrated in the following image:
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 40 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 209% rally in its share price over the past year, the average NVDA price target of $1,057.76 per share implies 11.45% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
Is It Wise to Allocate $1,000 Toward NVDA Stock Right Now?
Before you hurry to invest in NVDA, think about the following:
TipRanks’ team has built the Top Stocks Portfolio for investors, and Nvidia is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant gains in the years ahead.
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