Erste Group Bank Has Weak Outlook for NVIDIA FY2027 Earnings

Key Points

• Erste Group marginally trimmed NVIDIA's FY2027 EPS estimate to $7.83 from $7.86, which is slightly above the consensus of $7.77 and unlikely by itself to materially change sentiment.
• NVIDIA reported a strong quarter with revenue of $68.13 billion (up 73.2% year-over-year) and EPS of $1.62, beating estimates, alongside very high profitability metrics (ROE 97.37%, net margin 55.6%).
• The stock carries an overall Buy consensus with an average price target of $275.25 and supportive large buybacks and institutional flows, but notable insider selling and short-term AI-market caution could pressure near-term sentiment.

NVIDIA Corporation (NASDAQ:NVDA - Free Report) - Equities research analysts at Erste Group Bank decreased their FY2027 earnings per share (EPS) estimates for NVIDIA in a research report issued to clients and investors on Monday, April 27th. Erste Group Bank analyst H. Engel now forecasts that the computer hardware maker will earn $7.83 per share for the year, down from their prior forecast of $7.86. The consensus estimate for NVIDIA's current full-year earnings is $7.77 per share.

NVDA has been the subject of a number of other reports. Rosenblatt Securities restated a "buy" rating and issued a $325.00 price target on shares of NVIDIA in a research report on Monday, March 23rd. Jefferies Financial Group restated a "buy" rating and issued a $275.00 price target (up from $250.00) on shares of NVIDIA in a research report on Friday, January 16th. Evercore restated an "outperform" rating on shares of NVIDIA in a research report on Tuesday, January 6th. Piper Sandler restated an "overweight" rating on shares of NVIDIA in a research report on Thursday, February 26th. Finally, CICC Research upped their price objective on NVIDIA from $228.00 to $240.60 and gave the company an "outperform" rating in a report on Friday, February 27th. Four analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $275.25.

NVIDIA Price Performance

NVDA stock opened at $209.25 on Thursday. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.91 and a quick ratio of 3.24. The business has a 50 day simple moving average of $186.51 and a 200-day simple moving average of $186.06. The firm has a market capitalization of $5.08 trillion, a PE ratio of 42.70, a price-to-earnings-growth ratio of 0.71 and a beta of 2.34. NVIDIA has a 1 year low of $104.08 and a 1 year high of $216.82.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The computer hardware maker reported $1.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.54 by $0.08. The business had revenue of $68.13 billion during the quarter, compared to analyst estimates of $65.56 billion. NVIDIA had a return on equity of 97.37% and a net margin of 55.60%.The business's revenue was up 73.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.89 earnings per share.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Joule Financial LLC lifted its stake in NVIDIA by 2.2% during the third quarter. Joule Financial LLC now owns 2,308 shares of the computer hardware maker's stock worth $431,000 after purchasing an additional 50 shares in the last quarter. Presidio Capital Management LLC lifted its stake in NVIDIA by 0.4% during the fourth quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock worth $2,823,000 after purchasing an additional 53 shares in the last quarter. LMG Wealth Partners LLC lifted its stake in NVIDIA by 0.7% during the fourth quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock worth $1,427,000 after purchasing an additional 53 shares in the last quarter. Vision Financial Markets LLC lifted its stake in NVIDIA by 1.2% during the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock worth $866,000 after purchasing an additional 53 shares in the last quarter. Finally, IMG Wealth Management Inc. raised its stake in shares of NVIDIA by 1.4% in the third quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock valued at $713,000 after acquiring an additional 54 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at NVIDIA

In other NVIDIA news, Director Aarti S. Shah sold 19,000 shares of the company's stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the transaction, the director directly owned 36,007 shares in the company, valued at $6,362,796.97. This represents a 34.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Ajay K. Puri sold 300,000 shares of the company's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $182.25, for a total value of $54,675,000.00. Following the transaction, the executive vice president owned 3,018,547 shares in the company, valued at $550,130,190.75. This trade represents a 9.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 953,976 shares of company stock valued at $171,173,819 in the last ninety days. 4.17% of the stock is currently owned by corporate insiders.

NVIDIA Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Investors of record on Wednesday, March 11th were issued a $0.01 dividend. The ex-dividend date was Wednesday, March 11th. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. NVIDIA's dividend payout ratio is currently 0.82%.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Sharp price rise for NVIDIA B300 servers in China signals very strong demand and constrained supply for high-end AI systems — this supports revenue and pricing power for NVDA. Exclusive: Prices of Nvidia's B300 server at $1 million in China on US curbs, sources say
• Positive Sentiment: Adoption of NVIDIA’s Nemotron/Blackwell models and customer deployments (Vultr, Pony AI) shows product traction across cloud and autonomous driving ecosystems, supporting future software and GPU demand. Vultr Deploys NVIDIA Nemotron 3 Nano Omni / product adoption
• Positive Sentiment: SK hynix began mass production of SOCAMM2 memory modules tuned for NVIDIA platforms — improves server memory supply and performance for LLM workloads, easing a bottleneck in AI deployments. SK Hynix SOCAMM2 Ramp Highlights AI Server Memory Opportunity
• Positive Sentiment: NVIDIA’s corporate VC (NVentures) invested in Swedish AI legal-tech Legora, and the company continues startup investments — expands software/AI ecosystem and recurring-revenue opportunities. Nvidia backs AI legal tech Legora
• Positive Sentiment: Large buybacks ($51.8B over 12 months) and fresh institutional buying (Alecta added shares) are supportive of EPS and float reduction — a structural tailwind for the stock. Is NVIDIA Among the Stocks with the Biggest Share Buybacks? Alecta Boosts Nvidia Stake
• Neutral Sentiment: NVIDIA set an investor conference call for May 20 to discuss Q1 FY2027 results; written CFO commentary will be posted after the print — an upcoming catalyst but results drive direction. NVIDIA Sets Conference Call for First-Quarter Financial Results
• Neutral Sentiment: Erste Group trimmed FY2027 EPS estimate marginally (from $7.86 to $7.83) — a small analyst downward tweak versus consensus at $7.77, unlikely by itself to swing sentiment materially.
• Negative Sentiment: Broader market caution after reports that OpenAI missed internal growth/revenue goals has pressured AI-infrastructure names and triggered short-term profit-taking in NVDA. Nvidia stock slides as OpenAI fears spark selloff
• Negative Sentiment: Significant insider selling disclosed across recent filings (multiple executives selling shares) can weigh on near-term sentiment even if sales are routine. Quiver / insider trading summary

NVIDIA Company Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company's product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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