So far, analysts remained upbeat about NVIDIA Corporation (NASDAQ: NVDA), saying demand from artificial intelligence and a broad product line will support earnings despite some recent projections falling behind.
Even after Nvidia topped expectations with its profit for the May-July quarter, shares sank as much as 8.5% in aftermarket trade Tuesday. The firm also announced another $50 billion buyback.
However, its guided revenue in the current quarter roughly $32. 5 billion was lower than some estimates, as was its gross margin forecast. The forecasts also showed growth slowing from the pace of previous quarters.
Nvidia also said that its lineup of advanced AI chips, Blackwell, was running into some snags but is still on schedule for release by Q4.
However, analysts largely maintained a bullish view on the stock and even raised price target on some brokerages.
Truist: “nothing to see, move along” on Blackwell delay; PT raised
Changes to Nvidia’s Blackwell line had a “marginal impact” on Truist Securities, and quarterly earnings reinforced the firm’s leadership in AI.
The brokerage highlighted continued acceleration in growth at Nvidia’s core datacenter unit and called attention to a “flurry” of new products that showcased an increasingly broadening base of strength.
Truist raised its price target on the stock to $148 from $145 and reiterated a Buy rating, telling investors to “pierce through the fog.” The brokerage called Nvidia’s share selldown unwarranted.
NVDA product story back on track, Blackwell delays receding- Jefferies
Jefferies’ forecast raised ahead of results said there had been a jump in expectations for Nvidia earnings, but demand was still strong for the latest generation of high-end AI chips, Hopper.
Jefferies observed that while the company’s guidance for current-quarter was okay, it “was not good.”
However, the brokerage added that concerns over hardly anticipatedBlackwell line had been put in the rearview mirror and were still playing a free parked a textbook revenue from Hopper tertiary.
This report has been a collaboration between Benzinga Insights and Berenberg, with a writing addition by Jefferies. Jefferies kept its Buy on the stock PT at $150, implying a 19% upside over current levels.
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Wolfe Research: Bullish view underpinned by Blackwell expectations
Wolfe Research said Nvidia’s guidance did show signs of a slowdown in growth, but it followed its bullish view on shares with expectations for strong revenue growth following takers up when the Blackwell line launches.
However, The brokerage noted that a “successful and timely” launch of the new line was important for Nvidia driving future earnings.
Wolfe kept an Outperform on Nvidia with a PT of $150.
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