NVIDIA stock price poised to set new all-time high, analysts predict 25% upside

NVIDIA's Q1 results exceeded expectations, alleviating concerns about China restrictions, AI demand, and core semiconductor businesses. The company's net profit increased 26% to $18.7 billion, and cash on hand rose 25% to $53.6 billion. Analysts revised their price targets upwards, with a consensus of $167, indicating a potential gain of 65% from the pre-release price. The stock price rose immediately after the release and may break the all-time high resistance level, leading to further gains.

NVIDIA (NASDAQ: NVDA) reported its first quarter fiscal 2026 results, with revenue of $44.1 billion, up 12% from the previous quarter and 69% from a year ago. Despite the impact of new export licensing requirements for its H20 products into the China market, the company's net profit increased 26% to $18.7 billion. The company's cash on hand rose 25% to $53.6 billion, providing a strong financial position.

The quarter saw a significant impact from the U.S. government's requirement for a license to export H20 products to China. This led to a $4.5 billion charge related to H20 excess inventory and purchase obligations. However, NVIDIA was able to ship $4.6 billion worth of H20 products, with an additional $2.5 billion in revenue unable to be shipped due to these new restrictions. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%.

NVIDIA's CEO Jensen Huang highlighted the strong global demand for AI infrastructure, noting that AI inference token generation has surged tenfold in just one year. The company's AI supercomputer, the Blackwell NVL72, is now in full-scale production, further underscoring NVIDIA's leadership in the AI market.

Analysts have revised their price targets upwards, with a consensus of $167, indicating a potential gain of 65% from the pre-release price. The stock price rose immediately after the release and may break the all-time high resistance level, leading to further gains.

NVIDIA's quarterly cash dividend of $0.01 per share was paid on July 3, 2025, to all shareholders of record on June 11, 2025. The company expects revenue of $45.0 billion for the second quarter of fiscal 2026, with GAAP and non-GAAP gross margins of 71.8% and 72.0%, respectively.

The company's progress in various areas, including data center, gaming, professional visualization, automotive, and robotics, further supports its strong financial performance. NVIDIA's strategic partnerships and advancements in AI technology position it well for continued growth.

References:
[1] https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2026