Nvidia (NASDAQ: NVDA) beat earnings and revenue expectations for the past quarter yesterday, reporting $46.74 billion in revenue.
However, the stock still slipped as much as 3.5% in extended trading as data center performance failed to meet investor projections.
The chip maker remains confident, however, projecting revenue for this quarter to be even higher at $54 billion, “plus or minus 2%”, excluding any H20 shipments to China.
Unsurprisingly, analysts are already adjusting their price target for the stock, which on average sits at $205 for the next 12 months as of the time of writing, implying a nearly 13% upside based on 39 collective rankings on TipRanks.
New NVDA price targets
Nvidia received notable rating and price target adjustments on August 28, just a day after the second-quarter earnings report.
Harlan Sur over at J.P. Morgan raised his price target from $170 to $215, while KeyBanc’s John Vinh raised his own estimates from $215 to $230.
On the same day, Barclays reiterated its “Buy” rating with a target price of $200.
Wolfe Research was also bullish, raising its price target from $220 to $230 while keeping an “Outperform” on the semiconductor giant.
The firm highlighted robust artificial intelligence (AI) demand across global markets, with accelerating rack production at partners bolstering the outlook.
Unfazed by past quarter results, Wolfe Research also projects Nvidia’s data center revenue to reach $152 billion in fiscal 2026.
AI bubble still not bursting
Following the reports, Nvidia CEO Jensen Huang reassured investors that demand for the company’s chips remains strong, countering growing speculation of another bubble resulting from the rise of artificial intelligence.
The fears were warranted, though, as the U.S. stock market had reached its most expensive valuation ever just days prior, driven largely by cloud computing and generative AI.
Huang further stressed the importance of the Chinese market, describing it as a $50 billion opportunity and revealing plans to “fire back up” sales in the region in an interview with Yahoo! Finance.
“If we have an opportunity to go compete for that market, it would be great for America, it would be great for China, and we have an opportunity to go capture some of that $50 billion market.… America should be part of that.” — Jensen Huang
With so many pieces coming into play, both domestically and abroad, it appears that a new AI race is about to begin.
Featured image via Shutterstock
