UPDATE: Nvidia’s (NASDAQ: NVDA) share price surged 5% on November 20, 2023, following the company’s outstanding third-quarter (Q3) earnings report. The release highlighted an unprecedented demand for its AI computing hardware, propelling analysts to boost their price forecasts significantly.
Nvidia’s Q3 earnings, ending on October 26, 2023, revealed a staggering 62% increase in revenue year-over-year, totaling $57 billion—exceeding expectations of $54.8 billion. The data center revenue skyrocketed 66% to $51.2 billion, far surpassing the anticipated $48.6 billion. Non-GAAP net income reached $31.8 billion, translating to earnings per share of $1.30, up from $0.81 a year earlier, marking a remarkable 60% increase.
Jensen Huang, Nvidia’s Founder and CEO, stated,
“There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different.”
This assertion underscores the company’s robust position within the ongoing AI revolution.
Looking forward, Nvidia anticipates revenue for the upcoming fourth quarter (Q4) to hit $65 billion, exceeding previous expectations of $61.3 billion. CFO Colette Kress revealed that Nvidia has secured revenue commitments of half a trillion dollars for its current chip, Blackwell, and its upcoming chip, Rubin, from now until the end of 2026.
In light of these phenomenal results, analysts have rapidly adjusted their price targets for Nvidia. Here are some of the notable changes:
– Benchmark: Raised to $250 from $220
– Truist: Increased to $255 from $228
– Barclays: Boosted to $275 from $240
– Susquehanna: Elevated to $250 from $230
– Evercore ISI: Surged to $352 from $261, representing the highest target on Wall Street and nearly 80% above the current share price.
The excitement surrounding Nvidia is palpable, with many brokers significantly raising their price targets. The steep increase from Evercore ISI, in particular, has caught the attention of investors and analysts alike.
Looking ahead, one analyst forecasts a target of $250 for Nvidia stock by 2026, based on anticipated earnings growth of 25% year-over-year. This projection assumes that demand for AI hardware remains robust, contributing to a strong bullish sentiment for tech stocks.
With Nvidia’s transformative role in the AI sector, many investors are urged to consider buying the stock on any dips. The ongoing AI revolution positions Nvidia as a likely primary beneficiary as the market continues to evolve.
As Nvidia continues to dominate the tech landscape, investors and analysts alike are keeping a close watch on the stock’s trajectory and potential for further growth. Stay tuned for more updates as this story develops.
