No company has defined the AI boom more than Nvidia (NADSAQ:NVDA), whose success has been fueled by a series of blockbuster earnings reports. With the chip giant set to release its fiscal second-quarter results today after the close, can it add another stellar print to its ever-growing pile?
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According to Truist’s William Stein, an analyst who ranks at 7th spot amongst the thousands of Street stock experts, the answer is yes.
“Fundamental and sentimental factors appear to be still improving,” said the 5-star analyst. “Ahead of NVDA’s CQ2 (July), our regular dialog with component buyers & sellers reflected NVDA business trends continuing to improve.”
Based on those discussions made in preparation for the readout, Stein is confident Nvidia’s business is in rude health. One interesting takeaway is that contrary to reports, there is actually no delay to shipments of the company’s new Blackwell architecture. “We were unable to confirm the widely speculated/reported delay in Blackwell,” reports Stein. “We believe such ‘delays’ are more likely supply chain noise than reality.”
Positively, the few “specific order patterns” Stein has noticed for Blackwell have shown continuous improvement. They began a few months ago, increased again 1-2 months ago, and have recently seen another uptick.
Meanwhile, customers just can’t get their hands on enough GPUs. While many are eager to obtain Blackwell chips as quickly as possible, they are also quite willing to opt for H200 or H100 models depending on availability. So, should it turn Blackwell really is delayed, Stein thinks the “financial impact on NVDA would be minor.”
Based on these developments, Stein has bumped his CY25 EPS estimate higher, pushing it from $3.39 to $3.61. Additionally, the analyst has raised his price target from the prior $140 to $145, now suggesting shares will post growth of 14% in the year ahead. It hardly needs mentioning, but Stein’s rating stays a Buy. (To watch Stein’s track record, click here)
What do the other market prognosticators make of Nvidia’s prospects? Most, like Stein, take the bullish view. Based on a lopsided mix of 33 Buys vs. 3 Holds, the analyst consensus rates the stock a Strong Buy. The average target currently stands at $149.74, implying shares will appreciate by ~18% over the next 12 months. (See Nvidia stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
