At least 10 brokerages raised their price targets on Nvidia’s stock last week, pushing the median view to US$500. – AFPpic: Nvidia investors expect the chip designer to forecast quarterly revenue above estimates when it reports results on Wednesday . Their only question is, by how much?
The results could also dictate the direction of the wider market this week, as most of the S&P 500's gains this year have come from the AI-driven rally in Nvidia and Big Tech stocks. Citi analysts said last week they were only modelling a revenue forecast of around US$12 billion, but buy-side expectations have gone up to US$14 billion.
Investors will be looking at sales at Nvidia’s data centre unit, home to its prized H100 chip used in AI, to see if the valuation can be justified.