NVIDIA (NVDA.US) 's quarterly results have beaten expectations with a major increase in dividends, and the company announced a 10 for 1 stock split. Morgan Stanley also hiked its price target to US$1,160. The stock is now surging 6.8% to US$1,014.11 in pre-market.
NVIDIA reported revenue of US$26.04 billion for 1FQ ended 28 April, surging 262% YoY and exceeding market expectations of US$24.65 billion. Net profit was US$14.88 billion, rocketing 628%, while adjusted net profit was US$15.24 billion, soaring 462%. Adjusted EPS was US$6.12, surpassing the estimate of US$5.59. The company announced a 10 for 1 stock split, effective on 7 June, with a 150% increase in dividend to US$0.01 per share after the stock split.
NVIDIA was praised by brokers after announcing its results. Morgan Stanley believed the company's quarterly results reflected that AI development is far from reaching its peak, and that the company's future growth will remain strong through product transformation. Morgan maintained its Overweight rating and hiked its target price from US$1,000 to US$1,160.
Meanwhile, Goldman Sachs noted that NVIDIA achieved solid growth in the first quarter. The broker rated the company Buy, listed it as a Conviction Buy, and gave it a target price of US$1,100.
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