Chipmaker Nvidia (NVDA) is expected to report strong quarterly results and guidance next week, despite facing challenges with its GB200 NVL servers, according to KeyBanc Capital Markets. Five-star analyst John Vinh anticipates that Nvidia will beat consensus estimates and provide conservative guidance for the next quarter.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
KeyBanc believes that manufacturing constraints on GB200 NVL server racks will be offset by other factors, such as customers switching to alternative products and a surge in demand for H20 GPUs from Chinese cloud service providers. Additionally, Nvidia’s customers are financing inventory at electronics manufacturing services providers, which allows the company to recognize revenue from sell-in shipments.
Nvidia is scheduled to report its quarterly results on February 26. Analysts expect the company to earn $0.84 per share on revenue of $38.08 billion. In addition, Vinh reiterated his Overweight rating on Nvidia and raised his estimates and price target from $180 to $190 ahead of the earnings report.
Is NVDA a Good Stock to Buy?
Overall, analysts remain bullish on NVDA stock, with a Strong Buy consensus rating based on 35 Buys and three Holds assigned in the past three months. After a 101% rally in its share price over the past year, the average NVDA price target of $178.83 per share implies an upside potential of 30.3% from current levels.
