This Is How NVIDIA Gets to $250 Per Share

"Data Center revenue reached $62.3 billion in Q4, up 75% year-over-year, and now represents approximately 91.5% of total revenue. Within that segment, networking revenue hit roughly $11 billion, up more than 3.5x year-over-year, driven by NVLink, Spectrum-X Ethernet, and InfiniBand demand tied to next-generation AI systems."

"NVIDIA remains at the center of surging AI infrastructure spend. Management highlighted that Meta is deploying millions of Blackwell and Rubin GPUs across a multiyear buildout. The company also noted that inventory and supply commitments now extend into calendar 2027, underscoring the scale and duration of current demand."

"The Q1 guidance of $78 billion implies roughly 77% year-over-year growth at the midpoint versus Q1 FY2026 revenue of $44.1 billion. Annualized, that pace would approach a $312 billion run rate, although investors should recognize that simply annualizing a peak AI infrastructure quarter is not the same as forecasting a steady-state revenue base."

NVIDIA reported exceptional fiscal Q4 2026 results with $68.1 billion in revenue, up 73% year-over-year, and provided Q1 FY2027 guidance of $78 billion, exceeding expectations of approximately $72 billion. Data center revenue reached $62.3 billion, up 75% year-over-year, now comprising 91.5% of total revenue. Networking revenue within data center hit roughly $11 billion, up more than 3.5x year-over-year, driven by NVLink, Spectrum-X Ethernet, and InfiniBand demand. Q1 guidance implies 77% year-over-year growth at the midpoint. Meta is deploying millions of Blackwell and Rubin GPUs across a multiyear buildout, with inventory and supply commitments extending into calendar 2027, providing unusual visibility for a hardware business. At $250 per share, the valuation implies approximately 32x forward earnings using consensus FY2027 EPS estimates of $7.86.

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