While earnings season is now winding down, Wall Street is still waiting for one market giant to deliver its latest financial report. That would be Nvidia (NASDAQ:NVDA), a name closely associated with the AI-driven rally seen over the past year and a half or so.
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The chip giant has been partially responsible for the market’s bullish sentiment after a series of estimate trouncing quarterly reports have helped turn the semi firm into the world’s third most valuable company.
So, with Nvidia preparing to release its fiscal first quarter (April quarter) results next Wednesday (May 22nd), can investors expect another strong showing?
That is quite likely, says Piper Sandler’s Harsh Kumar, an analyst ranked in the top 1% of Street stock experts.
“We continue to see strong demand for NVDA’s data center products and feel the company is set up for another beat and raise quarter,” the 5-star analyst said. “Demand for Hopper GPUs remains strong with supply still working to catch up to demand as the product is still on allocation. Our checks indicate that demand for the Blackwell GPU series is also set to be strong across NVDA’s data center customer base.”
Kumar’s bull case assumes that Nvidia can potentially beat Street revenue expectations by $1.5-$2.0 billion both for April and likewise when looking ahead to the July quarter.
However, don’t expect that to cause a rally in the share price, as such a scenario has become quite normal. Historically, looking at the 3 previous quarters, the company has outpaced the Street’s top-line forecast by $1.9 billion on average. As such, due to “elevated investor expectations,” if that will be the case once again, Kumar anticipates the stock will be “flat to slightly up.”
Looking ahead, Kumar has an upbeat stance regarding the second half of the year, anticipating new architecture sales due to the TCO advantages of the Blackwell GPU series.
“Overall,” the analyst summed up, “NVDA remains our top large-cap pick and we remain bullish that the Blackwell series will provide meaningful acceleration to revenues longer-term.”
Accordingly, Kumar rates NVDA an Overweight (i.e., Buy), while his $1,050 price target suggests the stock will climb 11% higher over the coming months. (To watch Kumar’s track record, click here)
Among Kumar’s colleagues on Wall Street, 39 other analysts join him in the bull camp, overwhelming the 2 Holds on file, all resulting in a Strong Buy consensus rating. Based on the $1,026 average target, the stock has room for a ~9% uptick in the year ahead. (See Nvidia stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
