Wall Street is gearing up for a monster earnings report from Nvidia
The average price target on Nvidia is up nearly 8% over the past month, its fastest growth this year.
Ever since Nvidia unofficially kicked off the AI boom in May 2023, we’ve tended to see a predictable routine among Wall Street analysts once every three months:
Get blown away by the chip designer’s quarterly results, and immediately ratchet up their price targets for how high the stock can climb thereafter.
However, ahead of Nvidia’s second-quarter report, due after the close on Wednesday, the sell side is trying something a little different. This time, analysts are scrambling to increase their price targets ahead of results, seemingly much more confident in the affirmation they’ll be getting on the longevity of the AI boom and Nvidia’s critical role in facilitating it.
Over the past month, the average price target for Nvidia among analysts polled by Bloomberg has increased by 7.7%, the fastest rate of growth this year. The second-biggest jump in price targets occurred in the wake of the chip designer’s first-quarter sales and earnings beat.
Those seeing more upside in the stock over the past month include:
Morgan Stanley, to $200 from $170
Piper Sandler, to $225 from $180
Susquehanna, to $210 from $180
KeyBanc Capital Markets, to $215 from $190
Wedbush Securities, to $210 from $175
UBS, to $205 from $175
“We believe Nvidia earnings on deck is another positive catalyst for tech stocks that will further remind investors this is still only the bottom of the 2nd inning in the 9 inning game around building out the AI Revolution over the coming years to enterprises/consumers globally,” Wedbush analyst Dan Ives wrote. “We continue to believe from our Asia field checks that demand to supply is 10:1 for Nvidia’s golden chips.”
