<p><strong>Nvidia Corp.</strong> (NASDAQ: NVDA) reported first-quarter 2027 results that any other company in the S&amp;P 500 would frame as a generational quarter. Revenue of $81.6 billion topped consensus by $2.8 billion.</p>



<p>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.</p>



<p>The stock closed up 1.3% on Wednesday at $223.47 ahead of the print, then drifted modestly lower in extended trading. </p>



<p>On Thursday, premarket trading was flat. </p>



<p>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. </p>



<h2>Goldman Just Raised Nvidia’s Price Target To $285</h2>



<p>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.</p>



<p>The mechanics of his upgrade matter more than the number. </p>



<p>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. </p>



<p>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.</p>



<p>But the central argument is not about modeling tweaks. </p>



<p>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. </p>



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<p>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.</p>



<p>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. </p>



<p>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.</p>



<p>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. </p>



<p>In fiscal-year 2026 alone, Nvidia returned $41.1 billion through buybacks and dividends — and management appears ready to accelerate that pace materially.</p>



<h2>The Street Has Been Climbing The Same Ladder</h2>



<p>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.</p>



<p>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.<br/></p>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Firm</th><th>Rating</th><th>Old PT</th><th>New PT</th><th>Upside vs. NVDA’s May 20 close </th></tr></thead><tbody><tr><td>Cantor Fitzgerald</td><td>Overweight</td><td>$300</td><td>$350</td><td>+58.6%</td></tr><tr><td>HSBC</td><td>Buy</td><td>$295</td><td>$325</td><td>+47.3%</td></tr><tr><td>Bank of America</td><td>Buy</td><td>$300</td><td>$320</td><td>+45.0%</td></tr><tr><td>KeyBanc</td><td>Overweight</td><td>$275</td><td>$300</td><td>+36.0%</td></tr><tr><td>DA Davidson</td><td>Buy</td><td>$250</td><td>$300</td><td>+36.0%</td></tr><tr><td>Wedbush</td><td>Outperform</td><td>$300</td><td>$300</td><td>+36.0%</td></tr><tr><td>Goldman Sachs</td><td>Buy</td><td>$250</td><td>$285</td><td>+29.2%</td></tr><tr><td>Morgan Stanley</td><td>Overweight</td><td>$260</td><td>$285</td><td>+29.2%</td></tr></tbody></table><figcaption><em>Source: Benzinga Analyst Ratings, Price Target Changes on Nvidia · Week of May 12–19, 2026</em></figcaption></figure>



<h2>So Why Isn’t Nvidia Stock Moving?</h2>



<p>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.</p>



<p>The pattern is not new. </p>



<p>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.</p>



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<p>What changes the calculus this time, in Schneider’s view, is the second-derivative story. </p>



<p>Goldman’s calendar 2027 EPS estimate of $9.50 sits more than 30% above the Street consensus. </p>



<p>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.</p>



<p><em>Photo by JRdes via Shutterstock</em></p>

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<p>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.</p>

- Nvidia Corp. reported first-quarter 2027 revenue of $81.6 billion, surpassing expectations and driven by a 92% increase in Data Center revenue.  
- Goldman Sachs raised Nvidia’s 12-month price target to $285 and projected significant revenue growth, fueled by lower token costs and an improved capital allocation framework.  
- Despite a strong earnings performance, Nvidia's stock has historically shown limited post-earnings movement, but analysts believe upcoming consensus revisions could lead to stronger stock performance.

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Nvidia Just Did The Impossible: Wall Street Still Wants More