Nvidia's quarter was bigger than TSMC’s entire YEAR, investors may still be underpricing

SpaceX plans to launch its first Nvidia-powered AI satellites in late 2027, with up to 1 million satellites envisioned. The project will use Nvidia's Vera Rubin architecture, which offers significant AI performance. SpaceX reported operating losses in its space and AI units, with increased capital expenditures. Analysts have mixed views on SpaceX's stock, with price targets ranging from $160 to $800. Google invested $94B in SpaceX and agreed to lease GPUs from its AI infrastructure.

Nvidia's market value rose by US$442 billion on Thursday, the second-largest one-day gain in history, after the company forecast 70% revenue growth for the next fiscal year, exceeding expectations. Analysts noted potential upside to current estimates, with JPMorgan suggesting the outlook may be conservative. Nvidia's market cap is now around US$5.5 trillion.

US stocks rose on Thursday, with the Nasdaq and S&P 500 led by Nvidia's strong revenue forecast, boosting tech stocks. Nvidia shares jumped 8.7%, and Morgan Stanley noted its 2027 revenue growth forecast exceeds estimates. The S&P 500 gained 0.72%, and the Nasdaq climbed 1.57%. Investors await Fed's Warsh's speech for policy hints.

Jim Cramer noted that strong earnings from Nvidia and Salesforce refuted bearish tech narratives. Salesforce shares rose 22% after reporting 4-year high sales growth and AI bundle bookings doubling. Nvidia's stock gained 8% with diversified customer base and 70% revenue growth forecast for fiscal 2028, exceeding expectations.

Nvidia is reportedly acquiring Hugging Face for $12.9 billion, according to The Information and CNBC. Hugging Face, a cloud repository for AI models, is not yet profitable but is strategically important. The deal, if finalized, could help Nvidia expand its influence in the AI industry and support its hardware business.

Nvidia reported Q1 revenue of $81.6B, up 85% YoY, with data center revenue growing 92%. Earnings per share rose 140% to $1.87. Q2 guidance is $91B, slightly below analyst estimates. NVDA holds $13.2B in cash with $1B in short-term debt. Analysts rate it a 'Strong Buy' with a $307.38 target, implying 44.1% upside. Q2 earnings are expected today.