Nvidia Corporation (NVDA) delivered impressive second-quarter earnings, exceeding analysts’ expectations. The AI computing giant attributed its soaring revenue to robust performance in the data center segment. While Nvidia’s gross margin experienced a slight contraction compared to the previous quarter, the company issued an optimistic revenue forecast for the third quarter and announced a substantial $50 billion stock repurchase authorization. Despite these strong results, Nvidia’s shares declined by 3.6% in after-hours trading.
The post-earnings dip sparked mixed reactions from Wall Street analysts. Here’s a breakdown of their perspectives:
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JPMorgan:
Analyst Harlan Sur maintains an Overweight rating on Nvidia stock with a price target of $155, raised from $115. Sur expects robust demand in PC gaming to be a key revenue driver for the company. He remains optimistic about Nvidia’s growth prospects in data centers and the automotive sector, anticipating continued strength in these areas.*
Goldman Sachs:
Analyst Toshiya Hari holds a Neutral rating on Nvidia stock with a price target of $135. Hari acknowledged Nvidia’s efforts to address challenges, stating that management confirmed a successful redesign without compromising performance. He highlights Nvidia’s impressive data center revenue but suggests adjusting margin expectations.*
Cantor Fitzgerald:
Analyst C.J. Muse maintains an Overweight rating on Nvidia stock with a price target of $175. Muse emphasizes the significance of AI’s potential impact on hyperscalers and consumer internet players, highlighting the inherent value of advancing next-generation large language models. He believes that any potential pullback in the near term represents a buying opportunity.*
Stifel:
Analyst Ruben Roy rates Nvidia stock as Buy with a price target of $165. Roy underscores Nvidia’s data center performance, emphasizing the company’s position as a primary beneficiary of ongoing modernization in compute stacks. He expresses optimism about the Blackwell architecture despite short-term margin pressures.*
Benchmark:
Analyst Cody Acree has a Buy rating on Nvidia stock with a price target of $170. Acree views the recent drop in Nvidia’s share price as a buying opportunity, attributing the negative share reaction to a complacent and anxious investor base. He remains confident in Nvidia’s long-term prospects despite current market volatility.*
D.A. Davidson:
Analyst Gil Luria rates Nvidia stock as Neutral with a price target of $90. Luria acknowledges Nvidia’s strong revenue growth but expresses concerns about operating leverage and potential future sequential declines.*
Piper Sandler:
Analyst Harsh V. Kumar maintains an Overweight rating on Nvidia stock with a price target of $140. Kumar sees the recent pullback as an opportunity, believing that Nvidia’s fundamental strength remains intact despite short-term margin pressures.*
Truist Securities:
Analyst William Stein rates Nvidia stock as Buy with a price target of $148, raised from $145. Stein encourages investors to look past short-term challenges, emphasizing Nvidia’s enduring leadership in AI and strong growth expectations.Overall, while Nvidia’s Q2 results surpassed expectations, the stock’s post-earnings decline has generated varied responses from analysts. Many see it as a chance to invest in Nvidia’s promising future in AI and data centers, while others remain cautious about potential challenges.
