Still receiving rave reviews! NVIDIA's performance is highly praised on Wall Street: AI "train" is still steadily moving forward
NVIDIA recently released its second-quarter financial report, with performance exceeding expectations and receiving high praise from Wall Street analysts such as Wedbush Securities. Analyst Dan Ives pointed out that this financial report marks an important moment in the artificial intelligence revolution, as customer demand for GPUs far exceeds supply. NVIDIA expects revenue to reach $32.5 billion in the third quarter of the 2025 fiscal year, higher than analyst expectations. Several Wall Street institutions, such as Morgan Stanley, Raymond James, and Bernstein, have raised their target prices, demonstrating the market's optimistic outlook
According to the financial news app Zhitong Finance, on Thursday, the AI chip giant NVIDIA (NVDA.US) released its highly anticipated second-quarter financial report, with better-than-expected performance and guidance, which has also received high praise from various Wall Street banks for this company led by Jensen Huang.
Wedbush Securities analyst Dan Ives wrote in an investor report, "NVIDIA's financial report last night took the forefront and center stage globally, as AI pioneer Huang Renxun is the torchbearer of this AI revolution." He added that NVIDIA's latest financial report and guidance was another "drop the mic" moment.
Ives also pointed out that for those skeptical of AI-related hype, this financial report conference call was "very insightful."
Ives explained, "Huang Renxun detailed in the conference call how customers can immediately get returns on their GPU investments, with many customers vying to be the first companies to develop new AI technologies and models. At this critical moment, the demand for AI GPUs far exceeds NVIDIA's supply, in our view, (Wall Street) should view this performance as a very optimistic indicator for the entire tech industry with more shock and awe, rather than shrugging it off."
According to NVIDIA's financial report, looking ahead to the third quarter of the 2025 fiscal year, the company expects revenue to reach $32.5 billion, fluctuating by 2% up or down, compared to analysts' expectations of $31.71 billion.
Praise and Target Price Upgrades
After the performance announcement, many Wall Street banks including Morgan Stanley, Raymond James, and Bernstein have raised their target prices for NVIDIA.
Morgan Stanley analyst Joseph Moore raised his target price from $144 to $150 and reiterated an "overweight" rating. He stated that as NVIDIA's excellence becomes a daily occurrence, market expectations for the company "become more challenging," however, this is still a "very strong quarter" for NVIDIA.
In addition, the bank stated that comments surrounding the upcoming Blackwell chip are likely to be a "significant positive factor" before 2025.
Raymond James analyst Srini Pajjuri also raised his target price from $120 to $140 and reiterated a "strong buy" rating. He added that there are some concerns in the market about its gross margin outlook, but overall, the performance and guidance are "broadly in line with expectations."
Bernstein analyst Stacy Rasgon raised his target price from $130 to $155. Rasgon wrote in a report to clients, "Overall, despite high expectations, NVIDIA's performance remains strong, and the bank believes that the sequential growth in the data center business could continue until the end of this year."
Should we be concerned about issues surrounding the Blackwell chip? TD Cowen analyst Matthew Ramsay gave NVIDIA a "buy" rating, stating that the comments surrounding the Blackwell chip were "very encouraging." However, after the data center business revenue grew by over 150% year-on-year in the quarter, short-term noise may continue.
Lucas Ma, Investing Group Leader, mentioned that there are still uncertainties surrounding the Blackwell chip, but he believes the future is bright.
"With its significantly improved computing power and energy efficiency, I expect the Blackwell chip to fundamentally change budget allocations for AI developers and end-users," Ma said.
Jensen Huang stated during the conference call that the industry's expectations for the Blackwell architecture are incredible. Blackwell samples are being shipped to partners and customers.
However, judging from the stock performance after NVIDIA's earnings release, investors seem unconvinced. Analysts believe that investors are currently pricing NVIDIA based on a "perfect" scenario. Rasgon from Bernstein mentioned that NVIDIA's performance guidance must significantly exceed analysts' expectations for further stock price increases to be seen.
As of the time of writing, the company's stock price is down by approximately 2%