Nvidia’s Stock Expected to Thrive Despite High Expectations for Next Earnings Report
In the midst of high expectations surrounding its next earnings report, analysts believe that Nvidia’s stock can continue to thrive. According to Raymond James analyst Srini Pajjuri, Nvidia’s stock shows potential for further growth, prompting him to raise his price target to $500 and maintain a strong buy rating. Pajjuri cited a more modest beat/raise compared to last quarter and rumors of visibility extending into 2024 as factors supporting his optimistic outlook.
Similarly, Harsh Kumar of Piper Sandler adjusted his price target and predicts upbeat results for the latest quarter. Kumar expects Nvidia’s data-center revenues to reach $9.5 billion in the October quarter guidance. He also noted a potential boost in demand from China in the near term due to anticipated export restrictions imposed by the US government.
Barclays analyst Tim Long considers Nvidia the best stock in the AI sector and maintains an overweight rating with a $600 price target. Long believes that Nvidia’s stock has the potential to perform well, especially in a big beat-and-raise scenario, thanks to strong retail support.
While the chip sector faced a small sell-off, Nvidia’s stock showed resilience, experiencing a 0.6% increase in morning trading. In comparison, the PHLX Semiconductor Index was down 0.5%, and rival Advanced Micro Devices Inc. witnessed a significant decline of nearly 3%.
This positive sentiment towards Nvidia’s earning potential has been echoed by analyst reports from Morgan Stanley, UBS, and Wells Fargo earlier this week. All three firms expressed optimism about Nvidia’s earnings potential.
Nvidia’s stock has been on a remarkable upward trajectory, more than tripling in value so far this year. This growth, coupled with optimistic predictions from analysts, suggests that Nvidia’s stock is poised for continued success in the coming months.
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