Earnings season may be winding down, but Wall Street is still waiting for market giants to release their latest financial reports.it is Nvidia (NASDAQ:NVDA)the name is closely associated with the AI-driven rally we’ve seen over the past year and a half or so.
The semiconductor giant is contributing to the bullish mood in the market after a series of estimates beat its quarterly report, making it the third most valuable company in the world.
So, as NVIDIA prepares to release its first quarter (April quarter) results next Wednesday (May 22), can investors expect more strong results?
Piper Sandler’s Harsh Kumar says that’s very likely. He is an analyst ranked in the top 1% of street stock experts.
“We continue to see strong demand for NVDA’s data center products and feel the company is poised for another beat-and-raise quarter,” the 5-star analyst said. “Demand for Hopper GPUs remains strong and supply continues to work to keep up with demand as products are still being allocated. Our research shows that demand for the Blackwell GPU series continues to grow in NVDA’s data centers. We also saw strong performance across our customer base.”
Kumar’s bull case assumes that NVIDIA could beat street sales estimates by $1.5 billion to $2 billion, even looking ahead to the April and July quarters.
However, such scenarios have become quite common, so don’t expect it to cause stock prices to rise. Over the past three quarters, the company has exceeded TheStreet’s revenue estimates by an average of $1.9 billion. So if that happens again, Kumar expects the stock price to be “flat to slightly up” due to “increased investor expectations.”
Looking ahead, Kumar is optimistic about the second half of this year, with the TCO benefits of the Blackwell GPU series expected to drive new architecture sales.
“Overall, NVDA remains a top large-cap pick, and we remain bullish that the Blackwell series will significantly accelerate returns over the long term,” the analyst concluded.
So, while Kumar rates NVDA an Overweight (i.e. Buy), his $1,050 price target suggests the stock will rise 11% in the coming months. (Click here to see Kumar’s track record)
Thirty-nine other analysts among Mr. Kumar’s Wall Street colleagues joined the bulls, overwhelming the two registered holds and all giving the stock a consensus rating of Strong Buy. Based on the average $1,026 target, the stock has room to rise as much as 9% over the next 12 months. (look Nvidia stock price prediction)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
