Nvidia’s (NASDAQ:NVDA) earnings are in, and let’s just say – they didn’t disappoint. But the market? A little tougher to impress.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
For the October quarter, Nvidia posted adjusted earnings of 81 cents per share, beating Wall Street’s 75-cent estimate. Revenue came in strong at $35.08 billion, surpassing the expected $33.2 billion. Data center revenue came in at $30.8 billion versus the $29.14 billion forecast.
Looking ahead, the January quarter revenue forecast hit a midpoint of $37.5 billion, edging out the consensus of $37.1 billion.
Despite these solid numbers, Nvidia’s shares slipped 2.5% in after-hours trading. The reason? Lofty expectations. With the stock already up 195% this year, even strong results couldn’t fully satisfy the market’s elevated hopes.
Goldman Sachs analyst Toshiya Hari commented on the earnings, stating: “Nvidia delivered strong FY3Q (Oct) results with total revenue and non-GAAP EPS exceeding Street consensus… We believe a) customer demand for Blackwell is very strong, b) Hopper will also continue to ship alongside Blackwell well into CY2025, and c) if anything, supply is the likely culprit impacting both Blackwell and, to a lesser extent, Hopper shipments (per Nvidia’s press release)… We are Buy-rated on NVDA and the stock is also on the Americas Conviction List.”
Hari’s buoyant outlook for the company is no anomaly on the Street. NVDA stock has a Strong Buy consensus rating, based on 39 Buys and 3 Holds. The Goldman Sachs analyst’s colleagues see a 13% upside for the coming year, given the average price target stands at $165.18. (See NVDA stock analysis)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
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.
