NVIDIA’s Q1 Profit Jumps 103% as Gaming, Data Center Revenue Boom

NVIDIA Corporation (NVDA) posted better-than-expected fiscal Q1 results. Strong revenue recorded by the pioneer of GPU-accelerated computing at its Gaming and Data Center platforms mainly drove the results.

NVIDIA reported Q1 adjusted earnings of $3.66 per share, up 103% on a year-over-year basis, and handily beat the Street’s estimates of $3.28 per share. Revenue jumped 84% year-over-year to $5.66 billion and topped analysts’ expectations of $5.41 billion.

Gaming, Data Center, and Professional Visualization platforms recorded 106%, 79%, and 21% year-over-year jumps in revenues. Meanwhile, the Automotive platform recorded a 1% year-over-year decline in revenue. (See NVIDIA stock analysis on TipRanks)

NVIDIA CEO Jensen Huang said, “Mellanox, one year in, has exceeded our expectations and transformed NVIDIA into a data-center-scale computing company.”

Huang continued, “From gaming, cloud computing, AI, robotics, self-driving cars, to genomics and computational biology, NVIDIA continues to do impactful work to invent a better future.”

For the second quarter of Fiscal Year 2022, the company projects revenue of $6.3 billion (+/-2%), higher than the consensus estimate of $5.5 billion.

Following the Q1 results, Mizuho Securities analyst Vijay Rakesh increased the stock’s price target to $710 (13% upside potential) from $675 and reiterated a Buy rating.

Rakesh said, “NVDA remains a dominant AI leader with >95% share in GPU training and strong data center and gaming growth, with the continued ramp of its new training and inferencing Ampere architecture driving significant performance.”

NVIDIA shares have exploded 84.2% over the past year, while the stock still scores a Strong Buy consensus rating, based on 16 Buys versus 1 Hold. That’s alongside an average analyst price target of $707, which implies 12.6% upside potential to current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on NVIDIA, with 5.9% of investors increasing their exposure to NVDA stock over the past 30 days.

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