Nvidia Raises Price Target After Data Center Revenue Beats Estimates

Nvidia reported data center revenue of $75.25 billion for the most recent quarter, surpassing analyst estimates of $73.22 billion. Sales rose 92% from the same quarter last year and 21% from the prior quarter. The company revised its reporting structure to separate hyperscale and AI cloud customers from industrial and enterprise customers.

Hyperscale revenue reached $37.87 billion, up 115% year over year.

Demand for the Blackwell generation server rack was described as particularly strong, with frontier model builders and hyperscalers deploying hundreds and thousands of units. The company said this marked the fastest product ramp in its history. The next AI system is scheduled to launch in the third quarter and ramp through the fourth quarter and first quarter of next year.

The company reported visibility into nearly $20 billion in CPU revenue for the current year. Officials stated that every major hyperscale customer is working with Nvidia on Arm-based chips. AI infrastructure spending is projected to reach $3 trillion to $4 trillion annually by the end of the decade, according to company guidance.

Hyperscaler capital expenditures alone are forecast to exceed $1 trillion in 2027.