Nvidia Corp. (NVDA) is poised for a significant stock rally, potentially hitting $204, according to financial analyst Yiannis Zourmpanos. This bullish prediction is based on the company’s impressive third-quarter performance and the continued strong demand for its high-performance GPUs.
Nvidia, led by CEO Jensen Huang, has projected third-quarter revenue of approximately $32.5 billion. This impressive growth is attributed to the soaring demand for its Hopper and Blackwell GPUs, particularly in the data center segment. The Blackwell units, priced between $30,000 and $40,000, are in high demand, with production ramping up in the fourth quarter of 2024. These GPUs are expected to bolster Nvidia’s data center business, which boasts a robust 68% operating margin.
Nvidia’s upcoming earnings report on November 20th will be a key indicator of the company’s continued growth momentum. Zourmpanos emphasizes that Nvidia’s expansion is fueled by the increasing adoption of AI and data-intensive applications, solidifying its leadership position in the industry.
While Nvidia faces potential risks from supply chain disruptions, primarily due to its dependence on Super Micro Computer (SMCI) for AI server components, technical indicators and historical data point towards a bullish trend for the company. Analysts predict a 77% chance of positive returns in November.
Morgan Stanley analyst Joseph Moore echoes this optimism, anticipating a strong quarter for Nvidia, aligning with the Street consensus of 74 cents per share earnings on $32.937 billion in revenue. Despite supply constraints, Nvidia is expected to generate significant revenue from its Blackwell chips, potentially between $5 billion and $6 billion in the upcoming quarter.
Analysts project a potential 14% rally for Nvidia, highlighting the company’s strong market position and growth prospects. This optimism stems from Nvidia’s strategic focus on AI and data-intensive applications, which continue to drive demand for its advanced GPUs.
Nvidia’s strong performance and strategic investments position it for potential long-term value appreciation. As the company prepares to release its third-quarter results, investors and analysts alike are closely watching its performance, eager to see if it can continue to deliver on its ambitious growth plans.
