The best performer of ‘Magnificent Seven,’ and one of the best in the S&P 500, Nvidia (NASDAQ: NVDA) posted its highly anticipated earnings on May 22, managing to beat analysts’ targets in what was deemed one of the most anticipated quarterly earnings in the history of the stock market.
The earnings beat came with a prompt reward, as NVDA stock surged by 6% in the pre-market and finally surpassed the $1,000 threshold. At the time of writing, the price was $1,015.
This surge in price contributed to NVDA stock price surpassing multiple resistance zones on its way up, with the following two spanning from $1,011.63 to $1,025.83, which could easily be next surpassed if the surge extends into the following trading session.
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A plethora of good news for NVDA stock owners
One additional positive side effect of the NVDA surge is that its market cap is now above $2.5 trillion for the first time in history, which makes it larger than the market cap of the Italian and Australian stock markets combined and off only 17% from Apple’s (NASDAQ: AAPL), which is second-largest in the S&P 500.
Nvidia’s CEO, Jensen Huang, also announced the long-anticipated 10-for-1 stock split, which will take effect on June 7. This will effectively award holders nine additional NVDA shares for each share previously owned and make the NVDA stock price much more accessible to new investors.
Additionally, to further increase the appeal of its stock, Nvidia increased the quarterly dividend from $0.04 to $0.10, poised to attract dividend-loving investors such as Warren Buffett.
What do analysts say after Nvidia posted a double beat in Q1?
Nvidia reported adjusted earnings per share of $6.12, surpassing the consensus estimate of $5.59. The company’s revenue for the quarter reached $26.04 billion, exceeding the expected $24.65 billion.
Nvidia projected its sales for the upcoming quarter to be $28 billion, while Wall Street anticipated earnings per share of $5.95 on sales of $26.61 billion.
Bernstein SocGen Group analyst Stacy Rasgon raised the price target on Nvidia to $1,300 from $1,000 while maintaining an ‘outperform’ rating.
In a research note published by Harlan Sur, JPMorgan advises its customers to ‘buy’ the stock. Previously set at $850, the target price has been raised to $1,150
Goldman Sachs expected management to focus on commenting on recent data center revenue, reasons for the sequential decline in networking revenue, and other related topics at the results conference. Goldman Sachs rated the stock as a ‘buy,’ with a target price of $1,100.
UBS analyst Timothy Arcuri maintains his ‘buy’ rating on the stock. The target price, previously set at $1,150, has been raised to $1,200.
With a solid double beat on earnings, analysts’ ratings reflect the bullish sentiment in the market regarding Nvidia. Most of them maintained their buy ratings and upgraded their price targets to reflect the continued growth of NVDA stock in Q2.
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