NVIDIA Stock Analysis: Bullish Outlook Despite Missed Projections
Analysts remain optimistic about NVIDIA Corporation (NASDAQ:) despite some projections falling short, as demand from artificial intelligence and a strong product lineup are expected to support earnings.
NVIDIA's shares dipped in aftermarket trading after the firm reported better-than-expected profits for the May-July quarter but provided revenue guidance for the current quarter that missed estimates. The company also announced a $50 billion buyback.
While there were concerns about delays in the Blackwell line of advanced AI chips, analysts maintained a positive view on the stock, with some even increasing their price targets.
Truist Securities downplayed the impact of Blackwell delays, highlighting Nvidia's strong position in AI and datacenter growth. They raised their price target to $148.
Jefferies noted that demand for Nvidia's current AI chips remains strong and that fears of Blackwell delays are diminishing. They maintained a Buy rating with a PT of $150.
Wolfe Research emphasized the importance of a successful Blackwell launch for Nvidia's future earnings, but they are optimistic about strong revenue growth once the new line is introduced. They have an Outperform rating with a PT of $150.
In conclusion, despite some setbacks, analysts are confident in Nvidia's long-term prospects, with expectations of strong growth once the Blackwell line is launched. Investors should consider the potential upside in Nvidia stock based on these factors.