Nvidia’s Data Center Pivot Sparks $425 Price Target as Record Revenue Hits $81.6 Billion

Nvidia posts 85% revenue surge to $81.6B, reorganizes into Data Center and Edge Computing; analysts raise price targets to $425.

Nvidia is rewriting its playbook. Just days after the chipmaker posted a blockbuster first quarter for fiscal 2027, it outlined a sweeping reorganization of its business segments—a move that gives analysts fresh ammunition to lift their price targets. On May 27, Tigress Financial Partners analyst Ivan Feinseth raised his target on the stock to $425 from $360, keeping a “Strong Buy” rating. That implies roughly 100% upside from the current U.S. price of around $209. Feinseth pointed to Nvidia’s role as the backbone of the AI infrastructure boom and the surge in corporate spending on AI factories.

Bank of America stayed with “Buy” but set a more conservative target of $350, citing the company’s second-quarter revenue guidance of roughly $91 billion—a number that stands out even by Nvidia’s elevated standards.

The catalyst for the fresh optimism isn’t just the numbers. At the TD Cowen Technology, Media & Telecom Conference on May 28, Nvidia management laid out a new reporting structure centered on two platforms: Data Center and Edge Computing. The shift aims to give investors a clearer view of where growth is coming from—especially as agent-based AI and autonomous systems take off. Within Data Center, Nvidia will now break out sales to hyperscale customers versus AI clouds, industry, and enterprise. The Edge Computing segment will pull together PCs, robotics, automotive components, and AI-RAN base stations—areas that were previously harder to isolate.

The restructuring follows a quarter that left little to nitpick. Revenue surged 85% year over year to $81.6 billion, while net income jumped 211% to $58 billion. Adjusted earnings per share came in at $1.87, topping the consensus estimate of $1.75. The momentum also emboldened the board to juice shareholder returns. Nvidia authorized an additional $80 billion in share buybacks—on top of the $38.5 billion left over from the prior program—and lifted the quarterly dividend from a token $0.01 to $0.25 per share. The payout is scheduled for June 26, with a June 4 record date.

Behind the headline numbers, Nvidia is laying the groundwork for its next big push: the CPU market. The company’s upcoming “Vera Rubin” platform marks an offensive into stand-alone processors, a segment valued at an estimated $200 billion. CFO Colette Kress signaled that CPU-related revenue could hit $20 billion as early as 2026. With a market capitalization of roughly $5.1 trillion, Nvidia needs new frontiers to sustain its valuation, and the CPU push—combined with a massive bet on its supply chain—underscores that ambition. CEO Jensen Huang highlighted that Nvidia is spending about $150 billion annually in Taiwan with partners that manufacture products and manage the logistics chain, roughly ten times the level of five years ago.

On the software side, the company is tidying up a legacy. After two decades, the classic “NVIDIA Control Panel” is being retired, with all functions migrating to the new “NVIDIA App.” The latest graphics driver (version 610.47) has already begun removing the old panel for some users and contains early profiles for “DLSS 5 Neural Rendering,” the next generation of AI-powered graphics enhancement.

Despite the record results and aggressive targets, the stock has struggled to break higher. In Frankfurt, Nvidia shares traded at €183.96 on Thursday, little changed on the day but roughly 8.5% below the 52-week high of €201.05 set on May 14. The relative strength index stands at 36.4, signaling a mildly oversold condition. Over the past week, the stock has shed 3.07%, though it remains up 13.67% year to date and 53.29% over the past twelve months. Some of the resistance stems from valuation: much of the strength was already priced in. Meanwhile, the 30-year U.S. Treasury yield recently touched 5.197%, adding pressure on high-multiple growth names.

In the near term, two forces are colliding: accelerating operating performance and elevated expectations. Nvidia’s new reporting structure makes the AI engine more transparent, but it also raises the bar. The company must now prove that both Data Center and Edge Computing will sustain the record pace—starting with a second-quarter revenue forecast that already beat analysts’ prior estimates of $87.2 billion. With the Vera Rubin architecture set to launch in 2026 and early demand signals reportedly stronger than the Blackwell cycle, the pieces are in place. The question is whether the market will let the numbers speak louder than the noise.