Nvidia Corporation (NASDAQ: NVDA) experienced a robust surge of nearly 7% in its stock price on Monday, fueled by multiple Wall Street firms raising their price targets for the company, affectionately dubbed the “Godfather of AI.”
This upward momentum comes just ahead of Nvidia’s eagerly anticipated quarterly results, scheduled to be released on August 23.
Among the analysts showing increased bullishness, HSBC’s Frank Lee stands out with his buy rating on Nvidia (NVDA) shares, having adjusted his price target from $600 to $780.
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Lee pointed out that despite heightened expectations, there remains untapped potential for earnings growth in the second half of fiscal 2024 and fiscal 2025.
John Vinh, an analyst at KeyBanc, has also adjusted his price target for Nvidia (NVDA), raising it to $620. He underlined Nvidia’s “unmatched” standing in the market and expressed optimism about the company surpassing estimates.
Vinh highlighted Nvidia’s strategic edge in the AI domain, thanks to its CUDA software stack, which provides insulation against competitive threats and positions the firm uniquely to capitalize on the growth in artificial intelligence and machine learning within data centers.
Dan Ives, an analyst at Wedbush Securities, referred to Nvidia CEO Jensen Huang as the “Godfather of AI.” Ives emphasized the high anticipation surrounding the impending results of the Santa Clara-based tech giant, especially considering the recent volatility in tech stocks post-second-quarter results.
He anticipated a bullish outlook from Nvidia, expecting it to provide the necessary impetus for the tech sector’s continued upward trajectory, despite concerns stemming from the Jackson Hole/Powell speech and its potential market impact.
Analyst consensus estimates project Nvidia (NVDA) to report earnings of $2.09 per share on $11.07 billion in revenue for the second quarter. The reveal is scheduled for August 23.
The optimistic sentiment toward Nvidia has also translated into gains for other semiconductor stocks, including Advanced Micro Devices (NASDAQ: AMD), Qualcomm (NASDAQ: QCOM), and Marvell Technology (NASDAQ: MRVL).
