Nvidia Tops Q4 Revenue, Guides $78B Q1 and Draws 30% Upside Price Target
Nvidia reported Q4 revenue of $68.1 billion and Data Center sales of $62.3 billion, topping estimates, while operating EPS reached $1.76. Goldman Sachs reaffirmed its Buy rating, maintained a $250 12-month price target implying nearly 30% upside after Nvidia guided Q1 revenue at $78 billion and 75% gross margin.
1. Q4 Financial Results
Nvidia delivered fourth-quarter revenue of $68.1 billion, surpassing consensus, and reported operating EPS of $1.76. Data Center revenue reached $62.3 billion, driving the beat, while gross margin held at 75.2% and operating margin at 67.7%.
2. Q1 Guidance
For the first quarter, Nvidia guided to $78 billion in revenue at the midpoint, significantly above the Street’s $72.1 billion estimate. The company also forecast a 75% gross margin, exceeding consensus expectations.
3. Goldman Sachs Outlook
Goldman Sachs analyst James Schneider reiterated a Buy rating on Nvidia and maintained a $250 12-month price target, implying nearly 30% upside. Key bullish drivers include rising hyperscaler capital expenditures, growing business with nontraditional AI customers, and leadership in next-generation AI architectures.
4. Strategic Partnership Expansion
Nvidia announced an expanded collaboration with Meta to deploy Blackwell and Rubin GPUs, aiming to co-develop future AI infrastructure. This partnership underscores Nvidia’s role in powering large-scale generative AI deployments.