NVIDIA's Earnings Anticipation: AI Boom, Stock Performance, and Market Expectations

Analyst updates Nvidia stock price target with Q2 earnings in focus

Nvidia shares edged higher in early Tuesday trading ahead of its highly-anticipated second quarter earnings later this week and a key price target upgrade from a top Wall Street analyst. Nvidia (NVDA) shares have far outpaced gains for the broader Nasdaq benchmark over the past month, rising more than 13% from their early August lows amid optimism that AI demand will continue to accelerate well into the back half of the year and beyond even amid some delivery delays and supply chain constraints for its key AI-powering chips and processors. The group's newly-launched Blackwell line, which is forecast t power the group's data center revenues as high as $150 billion next year, is reportedly suffering some design flaws that may delay its delivery to key Nvidia customers until later in the year. Analysts had forecast Blackwell to start contributing to Nvidia's top-line growth in the third quarter and find their way into global customer data centers by the year's final three months. Barry Lam, CEO of Quanta Computer and a key peg in Nvidia's server building supply chain, told an event in Taiwan Monday that his company continued to ship AI servers with legacy H100 and H200 'Hopper' chips over the second quarter, and sees tripled-digit revenue growth this year. Blackwell delays in focus KeyBanc Capital Markets analyst John Vinh said in a note published last week that "Blackwell shipments in the fiscal third quarter have been backfilled with higher Hopper bookings", and doesn't see the delay impacting second quarter results or its near-term outlook. Wall Street forecasts are pointing to a consensus bottom line of 64 cents a share a 137% increase from the last year, with revenues more than doubling to $28.68 billion. Nvidia told investors in May that current-quarter revenue would rise to around $28 billion, at the time stronger-than-expected estimate assuaged investors' concern about delays for orders of H100 chips tied to the Blackwell launch. Related: Analysts: What to know before Nvidia earnings are reported this week Truist Securities analyst William Stein, in a note published Tuesday, said "fundamental and sentimental factors appear to be still improving" for Nvidia as he raised his price target on the group by $5, to $145 per share, while holding his 'buy' rating in place. "Our regular dialog with component buyers & sellers reflected Nvidia business trends continuing to improve," Stein and his team wrote ahead of the tech giant's July-quarter earnings. "This, combined with publicly available data about AI investments & adoption lead us to raise estimates modestly," he added, nudging his full-year earnings target to $3.61 per share from $3.39 per share. Cloud spending splurge Hyperscalers, the major providers of massive data centers and cloud services, are poised to spend around $500 billion over the next two years building out their massive infrastructure, according to estimates from Barclays, as they leverage their datasets to enhance sales of everything from drive-through dining to the most complicated pharmaceutical testing. Technology market analysts at Canalys noted that cloud infrastructure spending over the second quarter rose 19% from last year to around $78.2 billion, driven by investments from Amazon (AMZN) , Microsoft (MSFT) and Meta Platforms (META) . Hyperscalers are also poised to spend around $500 billion over the next two years building out their massive infrastructure, according to estimates from Barclays. More AI Stocks: "In the face of transformative tools like AI, the main providers will invest for fear of missing out," said Canalys vice president Alex Smith. "AI relies on large-scale computing power and storage, and the hyperscalers hope that AI-powered services become the next compelling reason for customers to transition to the cloud." Nvidia shares were marked 0.25% higher in premarket trading to indicate a Tuesday opening bell price of $126.78 each, a move that would extend the stock's six-month advance to around 61% and value the group at around $3.11 trillion. Related: Veteran fund manager sees world of pain coming for stocks

What Wall Street Analysts Think of Nvidia's Stock Ahead of Earnings

The Street's mean consensus price target implies a 15% premium to Monday's close. Chip giant Nvidia's latest quarterly financial results, due Wednesday after the closing bell, will be one of the week's most closely watched stock-market events. The results will land with shares of the AI chipmaker up more than 150% this year through Monday's close -- and Wall Street is broadly bullish on the stock. According to data as of late Monday, nearly all of the analysts covering Nvidia (NVDA) and tracked by Visible Alpha - 21 of 23 - have buy or equivalent ratings on the shares. The Street's mean consensus price target is $145.69, indicating a 15% premium to Monday's close above $126. The targets used in that consensus range from $100 to $180.

Nvidia Earnings Round The Corner: Top Investors In Jensen Huang's Company Set To Benefit If Q2 Appeases Street - NVIDIA (NASDAQ:NVDA)

The earnings is scheduled for Wednesday after the market close, with revenue expected to more than double. The much-awaited earnings report from artificial intelligence stalwart Nvidia Corp. NVDA is around the corner and analysts expect another quarter of robust performance from the company. The earnings report of the Jensen Huang-led company is vital for the continuation of the market rally, according to market strategists. The Street View: For the second quarter of fiscal 2025, analysts, on average, expect earnings of $0.64 per share and revenue of $28.68 billion, according to data available on Benzinga Pro data. This compares to the year-ago numbers of 25 cents (split-adjusted) in earnings and $13.51 billion in revenue. It is widely expected that Nvidia shares, which are up over 160% year-to-date, could rally further if quarterly results beat the high bar and the management offers positive commentary regarding AI accelerators' production and ramp-up. The average analysts' one-year price target for Nvidia shares, based on data compiled by TipRanks, is $149.89, which points to roughly 16% upside from current levels. See Also: Best AI Stocks Biggest Beneficiaries: Nvidia is undoubtedly a retail favorite now but the bulk of the shares (66.75% of the outstanding shares) are held by institutions, and insiders account for 4.29%, according to the Yahoo Finance database. The top institutions holding a big chunk of shares are as follows: Huang is among the AI billionaires, whose wealth rose in geometric proportion amid the rising popularity and the large-scale adoption of the technology. Forbes estimates Huang's wealth at $113 billion, and he is ranked 20 on the publication's billionaires list. Nvidia closed Friday's session up 4.55% at $129.37 on Friday and the stock was up an incremental 0.83% in Monday's premarket session, according to Benzinga Pro data. Read Next: Nvidia Down About 10% From All-Time Highs: Prominent Trader Says He Has Cashed Out Of The Stock Barely A Week Ahead Of Earnings And Will 'Decide On Re-entering' Later Image Via Shutterstock Market News and Data brought to you by Benzinga APIs

Nvidia's 'Hyperfocused' Investors Might Trigger Negative Stock Trend After Earnings, Says Gene Munster: Here's Why - NVIDIA (NASDAQ:NVDA)

As NVIDIA Corp NVDA prepares for its upcoming earnings report on Wednesday, Gene Munster, managing partner at Deepwater Asset Management, offers insights into the tech giant's future. Despite potential short-term setbacks, Munster foresees sustained growth for Nvidia through 2026. What Happened: Munster believes that despite Nvidia's recent stock surge, the ongoing demand-supply imbalance and potential delays in Blackwell could negatively impact investor sentiment. Munster anticipates a possible dip in Nvidia's stock following the earnings report, citing the recent 30% surge and proximity to all-time highs. "For investors who are just hyperfocused on every minute of what this company is doing, that could be viewed as slightly negative," he stated in an interview with CNBC's Squawk Box. The key focus, according to Munster, will be CEO Jensen Huang's comments on the demand-supply imbalance. Previously, Huang suggested this imbalance would persist "well into next year." Munster believes that if Nvidia's next-generation Blackwell architecture faces delays, equilibrium might not be reached until mid-2025. Munster's growth projections for Nvidia are notably optimistic, he wrote on X, "I expect Nvidia to grow faster for longer than most investors believe. For CY25, the Street is looking for 39% growth. I believe it will be closer to 50%. For CY26 they're expecting 17%, and I expect it be closer to 30%." While Munster advises caution regarding immediate stock performance, he emphasizes the company's enduring potential saying, "There is a lot of noise around this quarter, but I believe the Blackwell piece is probably the most important X factor... I don't think the stock action should be representative of the opportunity Nvidia presents over the next couple of years." See Also: Royal Society May Consider Expelling Elon Musk: Has He Gone Too Far? Why It Matters: The upcoming earnings report from Nvidia is highly anticipated by investors and analysts alike. Analysts expect another strong performance from the AI giant. For the second quarter of fiscal 2025, the average expectation is earnings of $0.64 per share and revenue of $28.68 billion, a significant increase from the previous year's figures. Market expert, Jim Cramer, predicts a potential $2 billion revenue boost in the reported quarter. This optimism is driven by Nvidia's pivotal role in the AI sector, despite recent market volatility. Market analyst Peter Boockvar emphasized that Nvidia's earnings are more crucial to the market than Federal Reserve Chair Jerome Powell's commentary. This underscores the significant impact Nvidia's performance has on market sentiment. Lastly, Dan Ives from Wedbush Securities described the upcoming earnings call as a "drop the mic" moment for Nvidia. Investors are eagerly awaiting CEO Huang's insights on future AI chip demand, which could shape the tech industry's trajectory through 2025. Price Action: Nvidia's stock closed at $126.46 on Monday, down 2.25%. In after-hours trading, the stock edged up 0.095%. Year to date, NVDA has surged 162.53%, according to data from Benzinga Pro. Read Next: Apple Announces CFO Transition, iPhone 16 Debut: What To Know Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Nvidia Stock, Semiconductor Sector Split Between AI Winners And Losers: Analyst Says 'Stick With AI First And Foremost' - NVIDIA (NASDAQ:NVDA)

An analyst sees the AI-related semiconductor stocks distancing themselves from the rest of the sector. With NVIDIA Corporation NVDA earnings in focus this week, analysts highlight key trends including the rise of artificial intelligence, strong demand from China, and geopolitical restrictions as crucial drivers for the semiconductor industry. Nvidia Earnings: Analysts expect Nvidia to report revenue of $28.7 billion for the second quarter, compared to $13.5 billion reported in last year's second quarter, according to data from Benzinga Pro. The company has beaten revenue estimates in eight straight quarters and nine of the last 10 quarters. Analysts see Nvidia reporting second-quarter earnings per share of 64 cents compared to 27 cents in last year's second quarter. The company has beat earnings estimates from analysts in six straight quarters and eight of the last 10 quarters. Cantor Fitzgerald analyst C.J. Muse calls Nvidia one of the top picks for the second half of 2024 ahead of the earnings report. "Stick with AI first and foremost," Muse said of the semiconductor sector. Muse said when it comes to semiconductor companies and AI, "you either have it or you don't." "2Q continued to show a divergence between the haves and have-nots, with anything AI-related thriving, while other areas remain in the cyclical doldrums." The analyst sees China demand showing relative strength, which could be a positive for Nvidia and the sector. Geopolitical tentions that are at the forefront of investor concerns appear to have a minimal impact on the companies based on results and guidance, the analyst said. Muse said the delay of Nvidia's Blackwell is a real concern, but not on the level some are expecting. "A 1-2 month delay makes little to no difference to our thesis on the name. Demand remains robust and supply remains tight." Muse said the Blackwell concerns being overdone makes Nvidia's valuation "too cheap to ignore." Read Also: Nvidia Is Next Week's Top Stock, Market Strategist Says: Why Best Long-Term Idea Is 'Just Buy Nvidia And Put It Away' Other Semiconductor Picks: Muse highlights Nvidia as a top winner in the semiconductor sector for the second half of 2024 alongside Broadcom Inc AVGO, Micron Technology MU, Western Digital Corporation WDC, NXP Semiconductors NXPI, ASML Holdings ASML and Teradyne Inc TER as top picks. Broadcom, Micron, Teradyne and Marvell Technology MRVL are highlighted as likely outperformers for the AI theme according to the analyst. "Spending patterns remain robust and we see no slowdown over the mid-term given criticality of investments. This group saw some of the greatest pullbacks during the recent SOX rollercoaster," Muse said of NVDA, AVGO, MU, MRVL and TER as AI picks. The analyst mentions Intel Corporation INTC as a potential value pick with its book value attractive, but not enough catalysts to drive upside for the stock. "One would have to believe risk/reward is biased higher, and this will be an argument many make here." Muse said this is the cheapest Intel has traded on a book value basis over the last three decades. "At the same time, the company is facing meaningful structural headwinds today and a still very uphill battle to regain its footing," Muse adds. NVDA Price Action: Nvidia shares are down 3% to $126.90 on Monday, versus a 52-week trading range of $39.23 to $195.95. Nvidia stock is up over 150% year-to-date in 2024. Read Next: Nvidia Earnings 'More Important' Than Jerome Powell's Jackson Hole Speech For Wall Street, Says Expert: 'Not Even Going To Tell You What He's Going To Do After That...' Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

Chip Stocks Fall Ahead of Nvidia's Earnings Report

Given Nvidia's outsized influence, a big move in its stock price could have a significant impact on markets. Semiconductor stocks lost ground Monday, ahead of the latest financial results from artificial intelligence (AI) darling Nvidia (NVDA), due for release after the markets close Wednesday. Nvidia shares finished 2.3% lower Monday, giving back some of the stock's gains Friday amid rising expectations for the company's results. Other chip stocks also lost ground, with the PHLX Semiconductor Sector Index (SOX) falling 2.5% Monday. Nvidia has been a key contributor to the record-setting run for U.S. stocks in 2024, with high expectations for the company's AI-fueled growth underpinning massive gains. In June, Nvidia briefly surpassed Microsoft (MSFT) as the world's most valuable company by market capitalization. Given the chipmaker's outsized influence in major indexes, a big move in its stock price would affect the broader market. Analysts have high expectations for Nvidia's upcoming report, projecting second-quarter revenue and earnings will more than double from the year-ago period. Their forecasts have also climbed in the last few days, which could make it more difficult for the company to impress investors. Shares of Nvidia partner Micron Technology (MU) sank Monday as well, falling nearly 4% as Needham reportedly trimmed its price target on the stock to $140 from $150. Analysts cited a flat outlook for shipments of Micron's DRAM and NAND products.

As Nvidia's Earnings Near, Jim Cramer Sees $2B Revenue Boost Potential: '...Jay's Stance Is Nothing But Icing On The Cake' Of AI Chipmaker - NVIDIA (NASDAQ:NVDA)

As NVIDIA Corp NVDA prepares to report its earnings this Wednesday, investors and analysts are eagerly awaiting results that could justify the company's soaring valuation. What Happened: Jim Cramer, the host of CNBC's "Mad Money," suggests that the market is looking for "a $2 billion upside surprise in the reported quarter and a lift of $2 billion for the current quarter" from the AI chipmaker. Cramer emphasized the importance of recognizing Nvidia's long-term potential and its pivotal role in the artificial intelligence sector. He highlighted that despite recent market volatility, Nvidia's foundational strengths remain intact. Despite recent market volatility that saw Nvidia's stock drop significantly, Cramer argues that the company's long-term prospects remain strong. He compared Nvidia to a biotech company, stating, "Nvidia is, in some ways more of a biotech which has developed something that each year saves more people's lives." This analogy underscores the transformative potential of Nvidia's AI technologies. Cramer also highlighted an often-overlooked aspect of Nvidia's business: "The software business of Nvidia is never talked about. Nvidia, like Apple Inc. AAPL, is thought about as a hardware company, due for a multiple contraction." This perspective suggests that Nvidia's value extends beyond its hardware offerings, potentially justifying its high valuation. As the market braces for Nvidia's earnings report, Cramer advises investors to look beyond short-term fluctuations. "If you believe in me then you believe that Jay's [Powell] stance is nothing but icing on the cake of Apple and Nvidia and if you think that, then Wednesday will not be the most important day of the year even as so many think it will be," Cramer concluded. See Also: Jim Cramer Praises L3Harris Technologies, Says Intel Is 'Getting Whacked' By AMD: 'I Much Prefer...' Why It Matters: Nvidia's upcoming earnings report is highly anticipated, with analysts expecting second-quarter revenue of $28.46 billion, a significant increase from $13.51 billion in the same quarter last year. Earnings per share are projected to be 64 cents, up from 27 cents per share in the previous year. Recently, Nvidia's stock has experienced volatility, with shares falling about 10% from their all-time highs. Prominent trader Steve Grasso has cashed out of his Nvidia holdings, citing the need to reassess based on price action. Despite this, some experts remain optimistic. Eric Jackson, founder of EMJ Capital, believes Nvidia's stock could surge to $340 in the medium term, driven by substantial investments in AI data centers. Dan Ives of Wedbush Securities has also predicted that Nvidia will deliver "another masterpiece quarter" due to the high demand for AI. He described the upcoming earnings week as potentially the most critical for the market in years. Price Action: Nvidia's stock closed at $129.37 on Friday, an increase of 4.55% for the day. Year to date, the stock has surged by 168.57%, according to data from Benzinga Pro. Read Next: Nasdaq, S&P 500 Futures Jump Ahead Of Powell's Jackson Hole Address: What's Going On Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Broadcom, Nvidia, AMD among decliners as chips sector awaits Nvidia results

Semiconductor stocks were mostly lower on Monday as the sector awaited quarterly results from Nvidia (NASDAQ:NVDA) later this week, which some on Wall Street have deemed "the most important in years." Nvidia shed 2.4% even as Morgan Stanley said its guidance could be impacted by demand of its H200 GPUs, which the investment firm characterized as strong. "So for at least some customers, the preference has been to get more Hoppers, where supply was starting to ramp down," analyst Joseph Moore wrote in an investor note. "So as HBM3e is the binding constraint, that supply can be shifted over to Hopper to drive up higher H200 volume. The H200 (essentially a midlife kicker for Hopper with higher memory content and a shift to HBM3e) has been popular, but has been bottlenecked by HBM3e allocation to hoppers." Additionally, Goldman Sachs said Nvidia shares could move 9% either way, based on options trades. Nvidia is slated to report quarterly results on Wednesday after the close of trading. A consensus of analysts expect the company to earn $0.64 per share on $28.71B in revenue. AMD (NASDAQ:AMD), which often trades in sympathy with Nvidia, fell nearly 3% in midday trading. Broadcom (NASDAQ:AVGO) shares fell more than 3.5% even as the company announced a deal with Hitachi Vantara to bring a new cloud solution for artificial intelligence. Micron (NASDAQ:MU) shares fell 3.3% even as it was reported that the memory maker will purchase two factories in Taiwan from electronics company AUO in a deal worth up to $620M. Several other semiconductor stocks were also lower on Monday, including Texas Instruments (TXN), Qualcomm (QCOM), Analog Devices (ADI) and Intel (INTC), each of which fell 1% or more. More on semiconductors AMD: Positioned As The One-Stop-Shop For AI Data Centers Wall Street Brunch: The Grandaddy Of Earnings Reports Nvidia Q2 Preview: Big Setback With Blackwell Delays Nvidia could see more than 9% upside on its reporting day This chart shows the nearly dead-heat returns for Mag 7 stocks and the rest of the S&P