NVIDIA (NASDAQ: NVDA) shares were up as much as 9.8% in early trading, following a strong fourth quarter earnings report, as the company reported EPS and revenues above consensus estimates, fueled by robust sales momentum and data center growth, despite muted performance from the automotive segment.

Datacenter sales for the quarter increased 21% Q/Q and 105% Y/Y to $606 million, followed by gaming sales that hit $1.739 billion for the quarter, up 11% Q/Q and 29% Y/Y. Professional visualization sales improved 6% Q/Q and 13% Y/Y to $254 million, while the Automotive segment disappointed with $132 million in sales, down 8% Q/Q, but up 3% Y/Y. The combined sales led to 4Q revenues above NVDA's original guidance range of $2.65 billion, plus or minus 2%, with management noting a $133 million net tax benefit associated with a one-time transaction.

NVDA's fourth quarter performance was well received by the Street, with 20+ price target increases, since the earnings beat was reported, although not all analyst agree on a positive outlook moving forward.

Jefferies analyst Mark Lipacis improved his price target to $300 (from $240), suggesting this outperformance from NVDA is part of a larger tailwind in computing 15 years in the making, citing previous examples to bolster his case. Lipacis comments "that Tectonic Shifts in computing bring 15 years of outsized demand and visibility to a new set of component players... NVDA's 6.6x return over the past two years is consistent with Microsoft (NASDAQ: MSFT) and Intel (NASDAQ: INTC) 2-years in the PC Era, and Qualcomm (NASDAQ: QCOM) and Arm Holdings 2-years into the Cellphone Era." Lipacis points to NVDA's 7th consecutive year of 100% Y/Y Datacenter sales growth, as evidence of NVDA being a "marquee beneficiary of the 4th Tectonic Shift in Computing."

Wells Fargo analyst David Wong has another take on NVDA's outlook following the strong 4th quarter earnings report, affirming an Underperform rating, while adjusting his price target a 'Street Low' $100 (from $87). Wong believes NVDA's Datacenter growth is already reflected in the company's valuation, while the drivers of gaming growth remain unsustainable, writing "strength in gaming was likely boosted by demand for gaming chips used in cryptocurrency mining applications, which we think may well be unsustainable and presents a risk... the risk is growing and there could be a downdraft in cryptocurrency-related demand at some point in the near future." Wong estimates "sharply decelerating" revenue growth for NVDA year over year into FY19, due to the previously mentioned crypto risks.

Shares of Nvidia Corp. last traded up 1.8% to $221.35.

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