Skip to content

Nvidia's Shares Surged (Once More) on Tuesday

Financial institutions are hurriedly revising their projections in anticipation of the upcoming earnings report by the chipmaker.

Nvidia's Shares Surged (Once More) on Tuesday
Nvidia's Shares Surged (Once More) on Tuesday

Nvidia's Shares Surged (Once More) on Tuesday

Nvidia's (NVDA -2.25%) shares soared higher once more on Tuesday, climbing as high as 4.9%. At 3:32 p.m. ET, the stock was still up by 4.6%.

The reason behind this surge was a couple of price target enhancements issued by financial analysts prior to the company's upcoming quarterly report.

Bullish sentiments

Truist Securities analyst William Stein kept his 'buy' recommendation on Nvidia shares while lifting his price prediction to $167. This implies an increase of 19% compared to the previous day's closing price.

Stein thinks Nvidia is an attractive investment ahead of the earnings report as he believes there's still room for growth beyond current market expectations. He emphasizes the rising demand in the data center market, which hosts an overwhelming majority of AI systems and models.

Following suit, Stifel analyst Ruben Roy also maintained his 'buy' stance on Nvidia shares while boosting his price projection to $180. This represents potential gains of 28% compared to the previous day's closing price.

Roy is confident that Nvidia will outperform Wall Street's predictions for the quarter, surpassing estimates while also raising its forecasts for the full year. He highlights that anticipation is building ahead of Nvidia's fiscal 2025 third-quarter results, due to be released after the market closes on Wednesday. He cites positive supply chain checks to back up strong demand for Nvidia's upcoming Blackwell architecture.

Much to demonstrate

Nvidia toned down expectations when releasing its last quarterly report, but analysts anticipate robust results nonetheless. For its fiscal 2025 third quarter (ending Sept. 29), the company projected revenue of $32.5 billion, indicating a growth rate of 79%, accompanied by an improvement in profitability.

Investors will closely monitor Nvidia's gross margin, which dipped slightly in Q2 following a new record in Q1. Additionally, they will look out for updates on Nvidia's upcoming Blackwell AI-focused processor, set to launch later this year.

Nvidia shares are presently trading at 33 times next year's earnings, but I'd argue that's a reasonable price to pay for a company renowned as the industry's leading AI processing powerhouse.

Investors might consider increasing their investments in Nvidia, given the bullish analyst predictions. Truist Securities analyst William Stein raised his price target for Nvidia shares to $167, while Stifel analyst Ruben Roy boosted his prediction to $180.

With analysts anticipating robust results for Nvidia's fiscal 2025 third quarter, investors may be keen on allocating more finance towards Nvidia, expecting it to outperform market expectations and boost its full-year forecasts.

Read also:

    Comments

    Latest