On Wednesday, Nvidia Corp (NASDAQ:NVDA) shares closed up 1.3% at $223.47 and slipped 1.26% to $220.66 in after-hours trading following the company's earnings report. The company's first-quarter earnings prompted reactions from Jim Cramer, Gene Munster and Daniel Newman.
Nvidia Earnings Top Estimates As AI Demand Surges
Nvidia reported first-quarter revenue of $81.6 billion, up 85% year-over-year and above analyst estimates of $78.8 billion.
The chip giant also posted adjusted earnings of $1.87 per share, beating Wall Street expectations of $1.76 per share.
The company guided for second-quarter revenue between $89.18 billion and $92.82 billion, topping consensus estimates of $86.62 billion.
Gene Munster Says AI Boom May Still Be In ‘Second Inning'
Deepwater Asset Management's managing partner Munster said Nvidia's results suggest the AI spending cycle remains in its early stages despite already explosive growth.
"Growth went from 89% to 109%," Munster said in a post-earnings video, adding that the company's latest commentary suggests it is not facing meaningful supply constraints.
He pointed to Nvidia's repeated statement that it has "strategically secured inventory and capacity" as evidence that demand — not limited supply — is driving the company's growth.
Munster also argued that Nvidia's expansion is defying the "law of large numbers," noting the company generated roughly $27 billion in annual revenue in calendar 2022 and could approach $400 billion in calendar 2026.
Still, he cautioned that Nvidia stock may struggle to deliver dramatic outperformance because investors continually anticipate future growth slowdowns as the company grows.
Daniel Newman Calls Nvidia ‘Victim Of Its Own Success'
Futurum Group CEO Newman said Nvidia's enormous market capitalization makes it harder for the stock to post explosive gains compared with smaller AI companies.
"$NVDA stock is a victim of its own success," Newman wrote, arguing that Nvidia's size limits the possibility of short-term share-price doubling despite strong fundamentals.
He also reacted to the guidance on X, writing, "The AI show must go on," while highlighting that Nvidia's outlook exceeded even elevated "whisper numbers" on Wall Street.
Jim Cramer Warns About Familiar Nvidia Trading Pattern
Cramer warned investors not to overreact to Nvidia's initial after-hours stock movement.
"The Nvidia pattern we are all now used to: an initial fly-up … then a relentless hammering," he wrote on X.
In a separate post, he said that Nvidia's GPUs continue to hold long-term value better than rival offerings from companies like Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), even as those firms ramp up their own AI infrastructure efforts.
According to Benzinga Edge Stock Rankings, NVDA is positioned in the 98th percentile for Growth and continues to show a bullish trend across its short-, medium- and long-term price trends.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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