Wall Street is not tapering down its expectations for Nvidia as the company prepares to release its second-quarter results. The tech giant has emerged as a premier artificial intelligence (AI) stock, delivering exceptional first-quarter results that propelled its shares to a market capitalization of $1 trillion. This impressive performance has led to a 196% increase in Nvidia’s stock price this year.
Analysts have weighed in on Nvidia’s upcoming earnings report and their outlook for trading the stock. Hans Mosesmann, an analyst at Rosenblatt Securities, recently increased his price target for Nvidia shares to $800, indicating an expected upside of 84% over the next 12 months. Mosesmann believes that Nvidia’s software and AI solutions, along with its unmatched strengths in compilers, libraries, and vertical optimizations, make it a top player in the industry. He anticipates that Nvidia will beat expectations in both revenue and profit for the second quarter.
Rick Schafer from Oppenheimer also maintains an optimistic view of Nvidia, maintaining an outperform rating and raising the price target to $500 per share. Schafer emphasizes that Nvidia has transformed from a graphics company into a leading AI computing platform company. He sees several tailwinds, such as high-performance gaming, data center/AI, and autonomous driving vehicles, driving sustained growth for Nvidia.
Chris Caso from Wolfe Research initiated coverage of Nvidia with an outperform rating coupled with a price target of $570 per share. He recognizes that Nvidia’s stock has already experienced significant growth but believes that there is still room for further expansion due to the company’s strong free cash flow.
Despite the general bullish sentiment, Deutsche Bank analyst Ross Seymour remains cautious about Nvidia’s stock heading into the earnings report. He maintains a hold rating with a price target of $440 per share, which indicates a modest upside of approximately 2%. Seymour highlights the importance of Nvidia’s future growth and the risk of cyclicality if near-term demand proves unsustainable.
Overall, analysts are optimistic about Nvidia’s prospects, citing its dominance in the software and AI solutions space, as well as its potential for future growth.