Nvidia(US:NVDA) EBSCN·2025-05-31 08:18Investment Rating - The report maintains a "Buy" rating for Nvidia (NVDA.O) [4][6] Core Insights - Nvidia's FY26Q1 revenue exceeded market expectations, reaching $44.062 billion, a year-over-year increase of 69% and a quarter-over-quarter increase of 12% [1] - The company's guidance for FY26Q2 is slightly below consensus expectations, with projected revenue of $45 billion, which is lower than the Bloomberg consensus of $45.454 billion [1][4] - The data center business is a key growth driver, with FY26Q1 revenue of $39.112 billion, up 73% year-over-year and 10% quarter-over-quarter [2] - The gaming segment achieved record revenue of $3.763 billion in FY26Q1, driven by the launch of Blackwell architecture chips [3] Summary by Sections Financial Performance - FY26Q1 revenue was $44.062 billion, exceeding Bloomberg consensus of $43.285 billion and the previous quarter's guidance of $43 billion [1] - Non-GAAP gross margin was 61.0%, down 12.5 percentage points quarter-over-quarter and 17.9 percentage points year-over-year, primarily due to $4.5 billion in inventory and procurement obligations related to H20 [1] - Non-GAAP net profit for FY26Q1 was $19.894 billion, a 31% increase year-over-year but a 10% decrease quarter-over-quarter [1] Business Segments - Data Center: Revenue of $39.112 billion, with computing revenue at $34.155 billion and networking revenue at $4.957 billion [2] - Gaming: Revenue of $3.763 billion, a 42% year-over-year increase and a 48% quarter-over-quarter increase [3] - Automotive: Revenue of $567 million, a 72% year-over-year increase, driven by rising demand for autonomous driving [3] Profitability Forecast - The report revises Nvidia's GAAP net profit estimates for FY2026 to FY2028 downwards to $113.88 billion, $149.20 billion, and $182.48 billion, respectively, reflecting a year-over-year growth rate of 56%, 31%, and 22% [4][5] - The projected GAAP EPS for FY2026 to FY2028 is $4.67, $6.11, and $7.48, respectively [5] Valuation Metrics - As of May 29, the closing price was $139.19, corresponding to a PE ratio of 30x for FY2026 and 23x for FY2027 [4]