Nvidia Earnings Preview: NVDA produces new all-time high before selling off

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Nvidia (NVDA), the leading global designer of GPUs and chips specifically used in generative AI systems, has seen its share price break to a new all-t

NVDA has broken the $480.88 all-time high from July 14.Q2 revenue is expected to jump 65% YoY due to heavy demand for AI-focused chips. , the leading global designer of GPUs and chips specifically used in generative AI systems, has seen its share price break to a new all-time high on Tuesday. The market is anticipating a significant beat-and-raise announcement at Wednesday’s post-market earnings call.

On Monday, HSBC analyst Franke Lee raised his price target on NVDA stock from $600 to $780. Lee’s view is that there is plenty of likelihood that the earnings outlook for next year will rise substantially from here, giving Nvidia a much lower forward price multiple. Nvidia’s rally this spring began when management hiked its outlook on Q2 revenues by $4 billion, so there is some precedent to that idea.

The average price target on Wall Street is $487.56. Twenty-four analysts have given Nvidia stock a Buy rating, six give it a Strong Buy, and only three have given it a Hold rating.higher over the past quarter. The consensus for adjusted earnings per share is now $2.09. The sales consensus for the quarter is $11.07 billion, slightly higher than Nvidia’s surprising outlook for $11 billion during the Q1 earnings call back in May.

 

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