Nvidia is gearing up to release its highly awaited earnings after the market closes on Wednesday. This event has been the talk of the town among investors and analysts alike. The chipmaker's stock is currently in the spotlight, with a majority of analysts expressing bullish views.Analysts' Overwhelming Bullishness
Among the 23 analysts closely monitoring Nvidia tracked by Visible Alpha, an astonishing 22 have given a "buy" rating to the stock. Their consensus price target of $170 indicates a significant premium of over 17% compared to Wednesday's intraday price of $144.66. This shows the high level of confidence these analysts have in Nvidia's future performance.
Price Target Increases
In the lead-up to the earnings report, several firms raised their price targets. Stifel analysts, for instance, bumped their price target earlier this week from $165 to $180. Similarly, Mizuho lifted its price target to $165 from $140 last week. These upward revisions further fuel the optimism surrounding Nvidia.
Projected Revenue Growth
Analysts are now expecting Nvidia's third-quarter revenue to grow by a remarkable 84% year-over-year, reaching $33.29 billion. This growth is primarily driven by the record-breaking sales from Nvidia's data center segment. In the second quarter, data center revenue hit a new high of $26.3 billion. Nvidia CEO Jensen Huang emphasized the importance of global data centers modernizing the entire computing stack with accelerated computing and generative AI.
Impact on Share Prices
Despite the positive outlook, Nvidia's shares edged 1.6% lower in afternoon trading on Wednesday, halting Tuesday's rally. However, it's important to note that the stock has nearly tripled in value since the start of the year. This shows the volatility and potential of Nvidia's stock in the market.Do you have a news tip for Investopedia reporters? Please email us at
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