'AI revolution just getting started': Here's what Wall Street is saying about Nvidia's 1st-quarter earnings blowout

• Nvidia stock soared 9% on Thursday to record highs after its reported earnings.
• The company defied analyst expectations yet again, and said that demand for its AI chips continues to outstrip demand.
• Here's what Wall Street is saying about Nvidia's blowout Q1 earnings report.

Nvidia reported another blowout earnings report in its first-quarter results, and its stock is soaring to record highs above $1,000 per share on Thursday. 

The company reported revenue and profit that surpassed analyst estimates and offered second-quarter revenue guidance that was well ahead of Wall Street's expectations. On top of that, the company announced a 10-for-1 stock split and increased its quarterly dividend by 150% to $0.10 per share.

Wall Street analysts were impressed by the results, with a slew of price target increases hitting the tape Thursday morning.

Here's what Wall Street is saying about the report.

Goldman Sachs: "New products to drive sustained growth in Data Center"

Analysts at Goldman Sachs pointed out that the company delivered accelerated year-over-year revenue growth, with its Data Center business growing revenue at 427%.

"Most importantly, we believe pre-existing investor concerns related to a potential 'air pocket' in Data Center revenue in 2HCY24 will abate following yesterday's call, given a string of new product launches scheduled between now and year-end and management commentary pointing to sustained growth in H100 demand as well as the potential for supply tightness in the H200 and Blackwell generation of products," Goldman Sachs said.

The bank rates Nvidia at "Buy" and raised its price target to $1,200 from $1,100.

JPMorgan: "Demand continues to outstrip supply into CY25"

Analysts at JPMorgan said they were impressed that Nvidia is seeing more and more industries participate in the demand for its H100 AI chips. It's not just cloud companies like Meta and Amazon that are buying its chips, it's also sovereign nations and automobile companies, among others, driving the demand for its products.

"More importantly, the team noted that demand will continue to outstrip supply into CY25, and potentially easing fears of an inventory build/correction in the 2H of next year. The team was constructive on the sustained growth into CY25+ driven by transition to accelerated computing, proliferation of generative AI applications, strong enterprise/enterprise vertical penetration, and build-out of sovereign AI," JPMorgan said.

JPMorgan rates Nvidia at "Overweight" and raised its price target to $1,150 from $850.

Bank of America: "Now see $50+ EPS power in two years"

Analysts at Bank of America said Nvidia's first-quarter earnings report suggests a smooth transition to the company's next-generation Blackwell chips, and that's going to lead to massive revenue gains.

Nvidia has a "turnkey system design that we think can sustain 80%+ market share in AI accelerator market that could double YoY to ~$100 bn in CY24, and can double again to $200bn by CY27 and then $300bn+ by CY30," Bank of America said.

"Demand continues to exceed supply and this situation could persist at least through most of CY25E," the bank said.

Analysts at the bank also said that despite Nvidia trading at record highs, it has $50+ earnings per share potential within the next two years, implying that the stock is trading at a reasonable valuation of about 20x price-to-earnings.

Bank of America rates Nvidia at "Buy" and raised its price target to $1,320 from $1,100.

Wedbush: "AI revolution just getting started"

Analysts at Wedbush said the "AI gold rush" is just getting started as a "tidal wave" of spending on AI chips hits the entire tech sector.

"The Godfather of AI Jensen and Nvidia delivered another masterpiece quarter and guidance that should be hung in the Louvre in our view," Wedbush said. 

"Nvidia's GPU chips are in essence the new gold or oil in the tech sector as more enterprises and consumers quickly head down this path with the 4th Industrial Revolution well underway. The AI Revolution starts with Nvidia and in our view the AI party is just getting started with the popcorn getting ready."

Wedbush rates Nvidia at "Outperform" with a $1,000 price target.