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Nvidia (NASDAQ:NVDA) Q4 Preview: What to Expect? – TipRanks.com – TipRanks

Chip giant Nvidia (Nasdaq:NVDA) will announce its fourth quarter 2024 financial results on February 21st. Wall Street analysts are optimistic about NVDA and expect it to post solid financial numbers, especially due to demand from artificial intelligence (AI) in its data center business.

It’s worth noting that most analysts raised their price targets on NVDA stock ahead of the fourth quarter announcement. One of his analysts, Mizuho Securities’ Vijay Rakesh, continues to see Nvidia as “the best space for AI/ML.” Rakesh said in a Feb. 12 note to investors that near-term demand for the company’s chips exceeds supply, suggesting strong sales numbers for the next quarter. The analyst raised NVDA’s revenue growth forecast for fiscal 2025 and fiscal 2026. He also raised his price target from $625 to $825.

NVDA’s fourth quarter revenue more than tripled

Wall Street analysts expect NVIDIA’s fourth-quarter revenue to be $20.37 billion, compared to $6.05 billion in the year-ago period. This means NVDA’s fourth quarter revenue will more than triple his year-over-year.

This significant growth in the company’s sales is likely to be driven by continued momentum in its data center business. The continued growth of his NVIDIA HGX platform, the reference architecture for AI supercomputers and data center infrastructure, is expected to increase data center revenue and overall sales.

Nvidia’s revenue is also likely to increase significantly in the fourth quarter due to higher sales and operating leverage. Analysts expect NVDA to post earnings of $4.59 per share in the fourth quarter, an increase of about 422% from the year-ago period.

Is Nvidia a good stock to buy now?

According to the analyst consensus rating, Nvidia is a “buy” ahead of its fourth quarter earnings release. The consensus rating for NVDA stock is a “strong buy” with 37 “buy” ratings and 3 “hold” ratings. However, with NVDA stock up about 47% year-to-date and about 252% over the year, analysts’ average price target of $746.91 suggests that upside potential is limited to 2.86%. There is.

Susquehanna analyst Christopher Rolland said investors have already priced in much of the short-term upside potential, with limited upside potential. He expects NVDA to post solid results in the fourth quarter and believes the magnitude of that beat will determine the future trajectory of his NVDA stock. Mr. Rowland reiterated his buy status on NVDA stock on February 14th and raised his price target from $625 to $850.

Insights from options trading activity

It’s worth noting that options traders are pricing in NVDA stock’s volatility as a result of earnings at +/-11.14%. This is higher than the -2.46% change related to earnings in the previous quarter.

The expected movement is determined by calculating the at-the-money straddle of the option closest to expiration after the earnings announcement.

Learn more about TipRanks’ optional tools.

conclusion

Nvidia is poised to deliver strong results in the fourth quarter, with sales and earnings supported by AI-driven demand in its data center business. However, the recent share price rise shows that the positive news is already reflected in the current market price.

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