Buckle up! NVIDIA faces a "big test" next week after the August shock! Wall Street is unanimously optimistic
NVIDIA's stock price fell more than 3% on Thursday ahead of the August financial report. Despite this, Wall Street analysts remain optimistic, with KeyBanc setting a target price of $180, believing the company will announce better-than-expected performance. Citigroup and Goldman Sachs also reiterated their "buy" ratings, expecting NVIDIA to deliver strong results due to robust demand for the Hopper GPU. Analysts forecast a 112% growth in revenue for the latest quarter
Intelligent Finance APP noticed that NVIDIA (NVDA.US) experienced a pullback in stock price before the financial report was released, with the stock falling more than 3% on Thursday. However, Wall Street analysts reiterated their bullish views on the company before the earnings announcement.
Prior to the release of the second-quarter financial report in August, investors in NVIDIA went through a roller-coaster ride. The stock price fell below $100 on August 5, then rebounded and rose for six consecutive days from the 12th to the 19th. As of the close on August 22, NVIDIA's stock price was $123.74.
KeyBanc analyst John Vinh is among the latest to believe why the company is expected to exceed high expectations from Wall Street analysts. The analyst reiterated a "buy" rating on the stock with a target price of $180.
In a recent report, Vinh wrote, "We believe that the moderate expectations for Blackwell shipments in the third quarter have been met with an increase in Hopper orders."
"We expect NVIDIA to announce better-than-expected/upwardly revised performance, with the uptrend driven by strong demand for the Hopper GPU."
Citi also reiterated a "buy" rating on NVIDIA this week, with a target price of $150. They expect "comments on Blackwell to make investors confident in the strong prospects for 2025, and the stock will hit a 52-week high."
Goldman Sachs analysts also reiterated a "buy" rating on NVIDIA and included it in the company's "Conviction Buy List."
Wall Street remains optimistic about the spending on artificial intelligence infrastructure by large tech companies. Goldman Sachs recently stated that they believe "demand from large cloud service providers and enterprise customers remains strong, and NVIDIA's strong competitive position in the field of AI/accelerated computing remains intact."
Analysts predict that NVIDIA's revenue for the latest quarter will increase by 112%, although this growth rate has slowed down compared to the over 250% increase in the same period last year