Nvidia Stock Surges as Earnings Expectations Grow
Chipmaker Could Give ‘Another Drop the Mic Performance,’ Wedbush Analysts Say
Key Takeaways
Expectations for Nvidia’s (
NVDA
)
earnings release Wednesday
are on the rise, in what could make it harder for the
artificial intelligence (AI)
darling to impress investors.
Consensus estimates for Nvidia’s second-quarter revenue rose by $170 million to $28.84 billion in the last 48 hours alone, according to estimates compiled by Visible Alpha, while net income projections rose $120 million to $14.95 billion.
Whisper numbers
could be even higher, with some analysts having long voiced concerns about investors’ expectations
exceeding
Wall Street projections.
Expecting Another ‘Drop the Mic Performance’
Wedbush analysts said Thursday they expect “another drop the mic performance from Nvidia,” citing signs of “massive enterprise AI demand” and spending by cloud giants such as Amazon (
AMZN
) and Alphabet’s Google (
GOOGL
), all trends that would benefit the chipmaker.
They’re not alone, as analysts from
Raymond James
, KeyBanc, and elsewhere recently said they expect a strong quarter from the chipmaker as well, despite concerns about a
reported delay
in Nvidia’s Blackwell AI chip.
Over 95% of analysts tracked by Visible Alpha have a “buy” rating for the stock, with a consensus price target of $144.83, 12% above Friday’s closing price.
Nvidia shares gained 4.6% Friday to close at $129.37. The stock has gained about 160% since beginning of the year.
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