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Analysts expect another strong earnings report from Nvidia, lift stock targets

Published 05/14/2024, 06:22 PM
© Reuters
NVDA
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Nvidia (NASDAQ: NASDAQ:NVDA) is set to report its latest earnings results next week, and Deutsche Bank analysts expect the chipmaker to continue its trend of posting strong multi-billion dollar beats and raise, driven by robust demand for AI compute.

While some may be slightly reducing orders ahead of the Blackwell launch, the overall demand trends are expected to remain strong, unlikely to impact NVIDIA's near-term outlook, analysts noted.

“Overall, we remain impressed by NVDAs best-in-class technology roadmap and believe AI fervor by its customers is likely to be sustained, yielding yet another strong quarter/ guide,” they wrote.

“However, investors apparently have become more discerning of AI-driven upside in earnings season QTD, and we believe continued fundamental strength is already well understood,” analysts added.

Therefore, the investment bank considers NVDA shares “fully valued,” reiterating a Hold rating ahead of the report.

Meanwhile, analysts at Wells Fargo were slightly more bullish in their pre-earnings note on NVDA. The investment firm said they see intra-quarter data points supporting an upside in Data Center revenue, estimating it could reach $23-$24 billion or more, compared to the Street's estimate of approximately $21.1 billion.

As a result, Wells Fargo raised their Nvidia forward estimates and lifted the target price from $970 to $1,150, implying more than 27% upside from the last closing price.

The move comes a day after an HSBC analyst raised the target price on NVDA from $1,050 to $1,350, citing robust upside potential stemming from the AI chip giant's pricing power with its NVL (Nvidia Virtual Link) server racks in fiscal 2026.

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