Nvidia triples its sales and rises on the stock market: is it advisable to buy stock now according to experts?

Nvidia’s stock pushed even higher, crossing the $1,000 mark, after it released a stellar first quarter earnings report, a record $26 billion. That was up 18% from the fourth quarter and 262% higher than a year ago. Shares of the company, whose chips are powering the AI revolution, are up nearly 118% so far this year, and over 240% year-over-year.

CEO Jensen Huang, besides sharing Nvidia’s stronger-than-expected earnings, addressed one of investors’ concerns on Wednesday’s earnings call. The high-end computer chip maker said that demand for its current Hopper AI chips has remained strong even as it transitions to its newest chip, the Blackwell AI chip.

There were worries that clients would cancel orders for the older chips to wait for the newer ones, but Huang explained that customers can “easily transition” as the “Blackwell systems have been designed to be backwards compatible.” Furthermore, while Huang expects “a lot of Blackwell revenue this year” demand may well outstrip supply “well into next year.”

Is it advisable to buy Nvidia stock now according to experts?

Nvidia also announced on Wednesday a 10-for-one stock split effective 7 June this year and a quarterly cash dividend increase of 150% from 4 cents to 10 cents per share. Analysts told Reuters that the stock split could make the AI-chipmaker’s shares more appealing to retail investors who had been losing interest.

Nearly half of the 58 brokerages raised their price targets on Nvidia’s stock. According to LSEG data the median view is now $1,180.

Bernstein senior analyst Stacy Rasgon feels that the chipmaker’s stock is still relatively inexpensive and has rated it an outperform. “With a narrative that is clearly nowhere near its end, and likely nowhere near its peak,” he told The Street. His target price is $1,300, up $300 from before.

Joseph Moore, a semiconductor industry analyst at Morgan Stanley upped his price target on Nvidia because “demand side signals from customers and front line sales seem considerably more optimistic than supply chain or lead time would indicate.” He is sticking with his buy rating and elevated his price target $160 to $1,160 a share.