What Is Going On With Nvidia Stock?

NVIDIA Corp NVDA stock surged 44% in the previous three months while the PHLX Semiconductor Sector Index (SOX), which Nvidia is part of, gained 29.41% during the period.

The stock is currently trading near its 52-week high of $158.71.

Also Read: Microsoft’s Next-Gen AI Chip Still Lags Nvidia’s Blackwell, Postpones Launch

In May, Nvidia reported first-quarter revenue growth of 69% to $44.1 billion, topping the Street consensus estimate of $43.2 billion. The revenue increased by 12% sequentially.

Adjusted EPS of 96 cents topped the analyst consensus estimate of 88 cents.

Nvidia faced an export ban on H20 products to China on April 9. The company said it incurred a $4.5 billion charge in the first quarter related to H20 excess inventory and purchase obligations. 

Nvidia forecasted second-quarter revenue of $45 billion, plus or minus 2%, versus estimates of $45.78 billion. The company noted its outlook reflects a loss of approximately $8 billion in H20 revenue due to the export control limitations.

Multiple Wall Street firms raised their price targets on the company after the results.

Nvidia has a consensus price target of $178.46 based on the ratings of 38 analysts. The high is $250, issued by Loop Capital on June 25, 2025. 

Nvidia made at least one acquisition during the quarter. As of June 27, Nvidia acquired Canadian AI startup, CentML, for undisclosed terms. 

CentML specializes in optimizing AI, offering innovative solutions that significantly enhance efficiency and performance.

The chip designer tapped CentML CEO Gennady Pekhimenko as a senior director for AI software at Nvidia.

CentML plans to optimize both model training and inference by running models after they’ve been trained.

Graphics processing units (GPUs) are also heavily used in inference today, and Pekhimenko noted them as a potential avenue of growth for the company.

Wedbush’s Dan Ives indicated that Nvidia is on a path to a $4 trillion market cap, eventually reaching $5 trillion, backed by increasing AI spending. 

Deepwater’s Gene Munster highlighted Nvidia’s core business’s impressive growth when excluding the impacts of the China chip restrictions.

Bank of America analyst Vivek Arya estimated that Nvidia holds 80%-85% of the total market for AI data center chips. The Blackwell platform prompted Arya to raise his earnings forecast for the calendar year 2027 to $7.23 per share, which is up 12%. He had projected long-term earnings power of $10 per share, driven by the company’s AI hardware moat.

NVDA Price Action: NVDA stock is down slightly at $157.65 at last check Monday.

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