Nvidia (NASDAQ:NVDA) has been on an impressive growth trajectory for the past two years, but even stellar performance may no longer be enough to satisfy investors. Despite exceeding Wall Street’s forecasts, Nvidia shares dropped nearly 7% in after-hours trading Wednesday.
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The AI chipmaker reported fiscal second-quarter revenue of $30.04 billion, marking a 122% year-over-year increase and surpassing the anticipated $28.73 billion. Earnings for the quarter hit $0.68 per share, outpacing the forecasted $0.64.
Looking ahead, Nvidia issued strong sales guidance for the current quarter, projecting revenue of $16 billion, well above the consensus estimate of $12.42 billion.
Moreover, Nvidia revealed the approval of an additional $50 billion share repurchase authorization.
Commenting on the earnings results, Jefferies’ Blayne Curtis, a 5-star analyst rated in the top 1% of the Street’s stock pros, noted, “Hopper demand remains strong and the company noted the Blackwell ramp was a key topic of discussion with expectations of several billion in revenue starting in 4Q – on time despite fears of more significant delays. The delay was fairly well understood already but the company did note a change to the Blackwell GPU mask to improve production yield. Overall, AI spend levels won’t be without a debate but the story is back on track with the Blackwell delay fears now in the rearview and several billion dollars of Blackwell layering onto continued growth in Hopper in the back half.”
To this end, Curtis rates NVDA shares a Buy along with a $150 price target. If this target is achieved, investors could see a 19% gain over the next twelve months. (To watch Curtis’ track record, click here)
Curtis’ outlook for NVDA is no anomaly on the Street. The stock has a Strong Buy consensus rating, based on 33 Buy recommendations and just 3 Holds. The Street’s average price target is in line with Curtis’ objective. (See NVDA stock analysis)
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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.
