Nvidia's recent earnings report challenges the notion that growth must slow as companies get bigger. The chipmaker posted better-than-expected January quarter results and projected current-quarter revenue above market estimates, with first-quarter fiscal 2027 revenue guidance of $78 billion. This outlook surprised analysts who expected growth to plateau given the company's massive scale.

Robust fourth-quarter data center sales, both sequentially and year over year, stood out as particularly impressive. Wedbush analysts raised their price target by $70 to $300 following the earnings, calling the $78 billion guidance a highlight that exceeded prior buy-side expectations. The shares trade at about 30 times fiscal 2028 earnings estimates of $9.97 per share, plus $2.21 per share in net cash.

Supply chain commitments jumped to $95.2 billion from $50.3 billion in the prior quarter, giving Nvidia visibility into shipments through calendar 2027. The company's early moves to secure constrained components like memory created what Wedbush expects to be a lasting advantage. Networking revenue grew faster than GPUs, driven by higher NVLink content and broader adoption of Nvidia's full-stack offerings, including switching products in new data centers beyond large cloud service providers.