Nvidia revenue hits $81.6bn despite stock lagging 28% below peak
Nvidia’s first-quarter revenue surged 85% to $81.6 billion, yet the stock trades well off its highs as investors weigh robust guidance against rising competitive threats.
Nvidia reported $81.615 billion in revenue for the first quarter of fiscal 2027, an 85.23% increase from the same period a year ago. Data Center Networking was a standout, growing 199% year over year to reach $14.8 billion. The chipmaker also guided for second-quarter revenue of $91 billion, paired with quarterly earnings growth of 214.5%.
Despite these figures, the stock has barely moved, sitting at $203.53. Shares are up just 9.26% year to date and trade 28% below the 52-week high of $236.26. The company now trades at a forward earnings multiple of 25 times.
The muted market reaction reflects a shift in investor sentiment rather than a deterioration in the underlying business. Traders are actively pricing in emerging competitive risks, specifically a rumored in-house chip from DeepSeek and Meta’s $145 billion infrastructure budget, which allocates capital toward custom silicon. Furthermore, Nvidia's forward guidance entirely excludes Data Center compute revenue from China, creating a tangible overhang on the stock.
Wall Street remains overwhelmingly bullish, with 58 of 61 analysts rating the stock a Buy or Strong Buy. The consensus price target sits at $301.62. However, some independent valuation models suggest a more measured 12-month outlook, with a baseline target of $259.23 representing 27.36% upside. These models argue that traditional projections remain anchored to historical earnings power rather than the company's accelerating trajectory.
The current pricing dynamic underscores a rare valuation dislocation in the mega-cap technology space. With a beta of 2.21, Nvidia shares swing sharply on shifting risk appetite, a volatility amplified by recent insider selling. For institutional investors, the core debate is no longer about near-term demand, which remains robust, but whether hyperscaler investments in custom chips will eventually erode Nvidia's dominant market share and margin structure.
