--- title: "Nvidia Just Did The Impossible: Wall Street Still Wants More" type: "News" locale: "en" url: "https://longbridge.com/en/news/287228299.md" description: "Nvidia reported a record $81.6 billion in revenue for Q1 2027, exceeding expectations, and guided Q2 sales to $91 billion. Goldman Sachs raised its price target for Nvidia from $250 to $285, citing strong growth prospects and improved capital allocation. Despite a significant revenue beat, Nvidia's stock has shown limited movement post-earnings, reflecting prior price increases. Analysts remain optimistic, with a consensus target of $285.50, indicating potential upside." datetime: "2026-05-21T13:06:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287228299.md) - [en](https://longbridge.com/en/news/287228299.md) - [zh-HK](https://longbridge.com/zh-HK/news/287228299.md) --- # Nvidia Just Did The Impossible: Wall Street Still Wants More **Nvidia Corp.** (NASDAQ: NVDA) reported first-quarter 2027 results that any other company in the S&P 500 would frame as a generational quarter. Revenue of $81.6 billion topped consensus by $2.8 billion. Data Center revenue alone grew 92% year-on-year to a record $75.2 billion. And second-quarter guidance of $91 billion landed nearly $5 billion above what Wall Street modeled — explicitly excluding any China contribution. The stock closed up 1.3% on Wednesday at $223.47 ahead of the print, then drifted modestly lower in extended trading. On Thursday, premarket trading was flat. For a company that just delivered the largest absolute revenue beat in semiconductor history — and announced an $80 billion buyback authorization on top of $39 billion already remaining — Goldman Sachs believes that the gap between fundamentals and market reactions is where the opportunity lies. ## Goldman Just Raised Nvidia’s Price Target To $285 On Thursday, Goldman Sachs analyst James Schneider reiterated his Buy rating on Nvidia and raised his 12-month price target to $285 from $250, applying an unchanged 30x multiple to a normalized EPS estimate that he lifted to $9.50 from $8.25. The mechanics of his upgrade matter more than the number. Goldman now projects Nvidia’s fiscal-year 2027 revenue to $410.9 billion — implying 90% annual growth — while the fiscal-year 2028 estimate jumps to $635.1 billion. Both numbers sit roughly 4% above the prior model, with EPS estimates raised by an average of 6% to reflect higher revenue and a lower tax rate. But the central argument is not about modeling tweaks. Schneider wrote that Goldman sees “a clearer path for the stock to outperform the market over the coming months,” driven by two factors: upside to hyperscaler CapEx forecasts that he believes are increasingly sustainable, and Nvidia’s improved capital allocation framework. **Read Also: Forget About Micron: The Hottest US Semiconductor Stock Is Already Up 100% This Month** The sustainability argument rests on a specific mechanism. Nvidia is driving over 70% annual token cost reductions while token prices stabilize or rise, which structurally improves the unit economics of every customer running inference at scale. The translation matters here. A token is the basic unit of work for an AI model — every word, image fragment, or piece of code processed. When the cost of producing a token falls 70% a year and the price customers pay holds steady, the gross margin on AI workloads expands rapidly. That margin expansion is what makes the trillion-dollar hyperscaler buildout economically rational rather than speculative. Schneider also flagged Nvidia’s improved capital allocation as a confidence signal. The $80 billion buyback expansion and the 25-fold dividend increase mark a meaningful shift from a company that, until last quarter, returned almost nothing to shareholders relative to its cash generation. In fiscal-year 2026 alone, Nvidia returned $41.1 billion through buybacks and dividends — and management appears ready to accelerate that pace materially. ## The Street Has Been Climbing The Same Ladder Goldman is not alone in repricing Nvidia higher. The Street walked into the print with price targets already lifted across the major sell-side desks during the week before the report. Per Benzinga Analyst Stock Ratings, the consensus 12-month price target across 34 analysts now sits at $285.50, implying roughly 29% upside from current levels. The three most recent ratings — from HSBC, DA Davidson and Morgan Stanley — average $303.33, suggesting the newer marks are pulling the consensus higher rather than lower. Firm Rating Old PT New PT Upside vs. NVDA’s May 20 close Cantor Fitzgerald Overweight $300 $350 +58.6% HSBC Buy $295 $325 +47.3% Bank of America Buy $300 $320 +45.0% KeyBanc Overweight $275 $300 +36.0% DA Davidson Buy $250 $300 +36.0% Wedbush Outperform $300 $300 +36.0% Goldman Sachs Buy $250 $285 +29.2% Morgan Stanley Overweight $260 $285 +29.2% _Source: Benzinga Analyst Ratings, Price Target Changes on Nvidia · Week of May 12–19, 2026_ ## So Why Isn’t Nvidia Stock Moving? Options markets had priced an implied move near 5–6% ahead of Nvidia earnings. And the stock had already climbed 67% over the prior 12 months, leaving little room for a beat — however large — to surprise investors who had already priced it in. The pattern is not new. Across the past 17 earnings reports, Nvidia shares have delivered a median one-day post-earnings move of essentially zero, with a seven-day median return of negative 3.5%. The company has consistently beaten estimates and the stock has consistently failed to celebrate. **Read Also: Nvidia Earnings Impact Tracker: Historical Data Shows Hidden Bull Trap** What changes the calculus this time, in Schneider’s view, is the second-derivative story. Goldman’s calendar 2027 EPS estimate of $9.50 sits more than 30% above the Street consensus. If that gap closes through upward consensus revisions over the coming quarters — driven by hyperscaler CapEx upgrades that Goldman believes are sustainable — the multiple does not need to expand for the stock to outperform. The earnings line does the work. _Photo by JRdes via Shutterstock_ ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [GS.US](https://longbridge.com/en/quote/GS.US.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [BAC.US](https://longbridge.com/en/quote/BAC.US.md) - [KEY.US](https://longbridge.com/en/quote/KEY.US.md) - [MS.US](https://longbridge.com/en/quote/MS.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [W4VR.SG](https://longbridge.com/en/quote/W4VR.SG.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md) - [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md) - [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md) - [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md) - [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md) - [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md) - [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md) - [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md) - [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md) - [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md) - [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md) - [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md) - [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md) - [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md) - [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md) - [8648.JP](https://longbridge.com/en/quote/8648.JP.md) - [KEY-K.US](https://longbridge.com/en/quote/KEY-K.US.md) - [KEY-L.US](https://longbridge.com/en/quote/KEY-L.US.md) - [KEY-J.US](https://longbridge.com/en/quote/KEY-J.US.md) - [KEY-I.US](https://longbridge.com/en/quote/KEY-I.US.md) - [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md) - [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md) - [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md) - [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md) - [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md) - [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md) - [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md) - [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md) - [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md) ## Related News & Research - [Up 110% YTD, Why Nvidia’s Backing Could Keep Nokia Stock Rallying](https://longbridge.com/en/news/287094557.md) - [Nvidia Q1 results surpass Wall Street expectations thanks to massive AI chip demand](https://longbridge.com/en/news/287136333.md) - [Lamda wins cloud deal with Hudson River Trading to supply access to Nvidia chips](https://longbridge.com/en/news/287059961.md) - [Nvidia Will Report Q1 Earnings on May 20 — Options Traders Expect an 8.65% Move in NVDA Stock](https://longbridge.com/en/news/286763191.md) - [BREAKINGVIEWS-Nvidia’s cash conducts the AI orchestra](https://longbridge.com/en/news/287120046.md)