Nvidia (NASDAQ:NVDA) reported solid earnings last night, beating on the top and bottom lines. While shares briefly dipped on the news, rationality soon kicked in, and investors saw the actual story: that Nvidia continues to lead the world in AI development and is executing on its mission to provide the best chips in the marketplace. Investors also welcomed the guidance.
Today, shares are moving higher in premarket trading, up around 6%. Analyst reactions are coming in with many pushing their price targets higher. Below are some of the increased expectations:
- Goldman Sachs – $300 from $285
- Citi – $315 from $300
- JP Morgan – $320 from $280
- Mizuho – $315 from $300
- RBC – $330 from $300
- Melius – $420 from $400
- Bernstein – $400 from $315
- Rosenblatt – $390 from $325
Raymon James gets the medal for the highest price-per-share target of $515.
Nvidia reported revenue of $96.2 billion, up 106% from a year ago.
Earnings per share stood at $2.46, up by 128% compared to the same quarter a year prior.
Bullish as ever, Nvidia CEO Jensen Huang said that demand is accelerating and the firm remains supply constrained, and unconstrained growth “would be a lot higher” / “significantly higher.”
“… we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”
Nvidia shared forward guidance for the next quarter: revenue is expected to be $108.0 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 74.0%, plus or minus 50 basis points.