Nvidia Corp Strong Guidance Plus Improved Capital Allocation

Nvidia reported a strong 1Q beat and 2Q guidance well ahead of expectations, coupled with a massive $80bn increase in share buyback authorization. Goldman Sachs reiterates its Buy rating and raises the price target to $285.

Key Takeaways

• 1.Nvidia reported 1Q revenue of $81.6bn and 2Q revenue guidance of $91.0bn, both significantly exceeding Street expectations.
• 2.The company significantly increased its capital return program, adding $80bn to its buyback authorization and raising the dividend to $0.25 per share.
• 3.Management expects sustainable demand for Blackwell and Rubin platforms, with standalone CPU revenue expected to reach at least $20bn this year.

Table of Contents

• Key stock takeaways
• Quarterly results were above the Street
• Standalone CPU revenue ramp
• GPU and CPU product ramps
• Increased capital returns
• Margins and OpEx
• 2Q revenue guidance is well above the Street
• Read-through to our coverage
• Estimate changes
• Price target and risks
• Disclosure Appendix

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