Nvidia (NASDAQ:NVDA) is at the center of Wall Street’s attention as the chip giant gears up to release its latest earnings report after the market closes next Wednesday (August 28). With the stock’s huge gains and its recent ascent to becoming one of the world’s largest companies, Nvidia has become the defining symbol of the AI-driven bull market.
So, is the Street in for another by-now-almost-obligatory beat-and-raise report?
According to Stifel’s Ruben Roy, a 5-star analyst rated in the top 2% of the Street’s stock pros, the answer is a resounding yes.
“We are again expecting a beat/raise scenario for July results and October guidance,” says Roy. “We are not expecting any meaningful change in tone or messaging relative to what NVDA has focused on since the company reported its F1Q results, i.e. the company’s longer-term road map and continued investment in organic and collaborative software offerings.”
That optimistic take should be especially pleasing for investors, given the design issue with the upcoming Blackwell GPU architecture has caused a delay in shipments. However, after talking with industry players, Roy says that potential delays are “likely to be measured in months rather than quarters.”
Meanwhile, the feedback regarding demand for the H-Series SKUs continues to be positive. In fact, homing in on Nvidia’s primary revenue generator, on the back of “increasing Hopper platform demand,” Roy anticipates Data Center segment revenues will surpass consensus expectations of $25 billion.
Adding extra sheen, Roy also notes management has already said to expect “sequential growth” spanning all segments, with Gaming, Automotive, Professional Visualization, and OEM all set for sales gains.
As for the October guide, Roy strikes a positive tone once again, anticipating “momentum to continue.” Street revenue expectations currently stand at $31.5 billion, a figure Roy thinks Nvidia will guide “modestly above.” This is down to the fact feedback from the supply chain on H-Series platform demand “remains positive into year-end.”
Lastly, on the subject of the Blackwell delay, Roy expects a solution to be found, anticipating the issue won’t prove “materially detrimental” to the company or to any of its many industry partners. “We remain, however, attentive to the situation, and look to management for additional commentary on any details regarding the scope of technical issues,” he summed up.
Bottom line, Roy rates Nvidia a Buy, with a $165 price target, implying the stock could climb another 29% over the next year. (To watch Roy’s track record, click here
Elsewhere on the Street, the bulls seriously outgun the skeptics, with 37 Buys vs. 4 Holds resulting in a Strong Buy consensus rating. The average target, at $144.17, makes room for 12-month returns of 13%. (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.
