Nvidia Stock Surges as Earnings Expectations Grow

Trending 2 weeks ago

Chipmaker Could Give ‘Another Drop nan Mic Performance,’ Wedbush Analysts Say

Published August 23, 2024

04:52 PM EDT

Nvidia CEO Jensen Huang delivers his keystone reside up of Computex 2024 successful Taipei connected June 2, 2024.

Sam Yeh / AFP / Getty Images

Key Takeaways

  • Expectations for Nvidia’s net merchandise Wednesday are connected nan rise, successful what could make it harder for nan AI chipmaker to impressment investors.
  • Consensus estimates for Nvidia’s second-quarter gross and net climbed by hundreds of millions of dollars wrong nan past 48 hours alone. 
  • Nvidia shares gained much than 4% Friday and person risen astir 160% since nan commencement of nan year.

Expectations for Nvidia’s (NVDA) earnings merchandise Wednesday are connected nan rise, successful what could make it harder for nan artificial intelligence (AI) darling to impressment investors. 

Consensus estimates for Nvidia’s second-quarter gross roseate by $170 cardinal to $28.84 cardinal successful nan past 48 hours alone, according to estimates compiled by Visible Alpha, while nett income projections roseate $120 cardinal to $14.95 billion. 

Whisper numbers could beryllium moreover higher, pinch immoderate analysts having agelong voiced concerns astir investors’ expectations exceeding Wall Street projections. 

Expecting Another ‘Drop nan Mic Performance’  

Wedbush analysts said Thursday they expect “another driblet nan mic capacity from Nvidia,” citing signs of "massive endeavor AI demand" and spending by unreality giants specified arsenic Amazon (AMZN) and Alphabet's Google (GOOGL), each trends that would use nan chipmaker. 

They’re not alone, arsenic analysts from Raymond James, KeyBanc, and elsewhere precocious said they expect a beardown 4th from nan chipmaker arsenic well, contempt concerns astir a reported delay successful Nvidia's Blackwell AI chip. 

Over 95% of analysts tracked by Visible Alpha person a “buy” standing for nan stock, pinch a statement value target of $144.83, 12% supra Friday’s closing price. 

TradingView

Nvidia shares gained 4.6% Friday to adjacent astatine $129.37. The banal has gained astir 160% since opening of nan year. 

Source investopedia
investopedia