Analysts Maintain Bullish Stance on NVIDIA Despite Mixed Results

Investing.com – Analysts have sustained a bullish outlook on NVIDIA Corporation (NASDAQ: NVDA) even after some projections from the chipmaker did not meet expectations. The sustained demand for artificial intelligence and a robust lineup of products are expected to support earnings.

NVIDIA’s shares dropped over 4.5% in premarket trading on Thursday, despite the firm outperforming profit expectations for the May-July quarter and announcing a $50 billion buyback. However, its revenue guidance of approximately $32.5 billion for the current quarter fell short of some estimates, as did its gross margin outlook, indicating a slowing growth pace.

Additionally, NVIDIA acknowledged challenges with its Blackwell line of advanced AI chips, although they are still set to launch by the fourth quarter. Despite these hurdles, analysts largely remain optimistic about the stock, with some brokerages raising their price targets.

Truist: Blackwell Delay Has Negligible Impact

Truist Securities stated that changes to NVIDIA’s Blackwell line will have a minimal impact. The firm’s quarterly earnings reaffirm its leadership in AI, highlighting strong growth in its datacenter segment and a variety of new products. Truist raised its price target from $145 to $148 and maintains a Buy rating, urging investors to “look through the fog” of the recent stock selloff.

Jefferies: Product Demand Remains Strong

Jefferies noted that expectations for NVIDIA’s earnings had increased sharply before the results. Although the current-quarter guidance was solid, it was slightly lacking. The brokerage reassured that fears regarding significant delays in Blackwell have dissipated, with a price target of $150 and a Buy rating intact.

Wolfe Research: Growth Expectations Remain Strong

Wolfe Research acknowledged that while NVIDIA’s guidance reflects a slowing growth rate, the brokerage remains bullish, citing strong revenue growth expectations with the Blackwell line’s eventual launch. They maintained an Outperform rating with a price target of $150.

Bernstein: Continued Growth Anticipated

After NVIDIA’s earnings release, Bernstein analysts increased their price target from $130 to $155. They emphasized the company’s delivery amidst high expectations, noting that sequential growth in its datacenter unit is anticipated to continue.

Wells Fargo: Buy the Dip

Wells Fargo also raised its price target on NVIDIA from $155 to $165, advising investors to capitalize on the recent pullback. The analysts found it hard to identify negatives in NVIDIA’s recent earnings and guidance.

Bank of America: Unique Growth Opportunities

Bank of America analysts highlighted NVIDIA’s unique growth at a reasonable valuation. They cautioned potential quarterly fluctuations stemming from the Blackwell ramp delay but are confident in NVIDIA’s long-term growth opportunities amid generative AI deployments.

Ambar Warrick contributed to this report.