Nvidia’s (NASDAQ:NVDA) rise from a run-of-the-mill chip giant to one of the world’s biggest companies has been built on a series of blockbuster earnings reports. At first, these took Wall Street by surprise, but they have now become almost de rigueur.
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With the company preparing to report its fiscal second-quarter results on August 28, can investors expect the sun to keep on shining on Nvidia?
Goldman Sachs’ Toshiya Hari, an analyst ranked among the top 1% of Wall Street stock experts, seems to think so.
“We expect management commentary coupled with supply-chain data points over the coming weeks to lead to higher conviction as it pertains to Nvidia’s earnings power in CY2025,” the 5-star analyst said.
However, Nvidia faces a potential bump in the road: a design issue has delayed the shipment of its new Blackwell AI chips, raising concerns about potential growth slowdowns in the October and/or January quarters. Hari notes that the impact on Nvidia’s Data Center business will depend on several factors, including the length of the delay – whether it will be resolved quickly or if the issue is more fundamental – and whether customers will choose to go with Hopper-based products like the H100/H200 or hold out for Blackwell.
Despite this, Hari remains optimistic. He expects the market to overlook any negative impact from a potential delay in the Blackwell ramp, predicting that Nvidia will still deliver strong sequential growth in Data Center revenue. This growth will be driven by ongoing demand for its Hopper-based GPUs (H100, H200, H20), early shipments of Blackwell-based products, and expansion in its Networking business, particularly from the ramp-up of Spectrum-X, an Ethernet-based product.
Hari also thinks Nvidia’s position as the undisputed AI chip leader is safe for now. “Importantly,” he says, “we believe customer demand across the large Cloud Service Providers and enterprises is strong and Nvidia’s robust competitive position in AI/accelerated computing remains intact.”
As far as the shares are concerned, Hari thinks the “set-up for NVDA is constructive.” With the stock exhibiting a “favorable risk/reward balance,” Hari rates NVDA as a Buy, while maintaining its place on Goldman’s Conviction List. (To watch Hari’s track record, click here)
Most analysts agree with Goldman’s stance. NVDA stock claims a Strong Buy consensus rating, based on 37 Buy recommendations vs. only 4 Holds. The average price target stands at $144.17, which makes room for 12-month returns of ~11%. (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.
