Nvidia's Earnings Are Approaching: Why Wall Street Is Extremely Bullish

Anticipation is running high for Nvidia's second-quarter earnings report this week. Wedbush believes another impressive earnings is on its way.

 

According to analyst Matt Bryson, Nvidia will not only surpass expectations but will also present a robust outlook for the future when it unveils its report on Wednesday. The company's strong foothold in the AI sector, Bryson argues, means that Nvidia's results and forecasts don't necessarily need to reach the upper limit of Wall Street's projections to satisfy investors. Should the forecasts for the current quarter fall short of optimism, Bryson believes the market will instead focus on potential strength in subsequent quarters.

 

He points out, Given the substantial rise in demand for AI training in the past quarter and the absence of any other silicon supplier capable of matching Nvidia"s production scale, we believe any unmet demand will naturally flow into future quarters, bolstering upcoming sales and EPS.

 

Bryson remains notably optimistic about Nvidia's medium-term outlook, affirming Wedbush's extremely bullish stance on the company's future. He maintains an Outperform rating for the stock with a price target of $490, suggesting a 13% increase from the current level. The stock has jumped 196% this year, with market cap $1.07 trillion. 

 

As Nvidia's earnings report takes center stage, the company has experienced a series of upward revisions to its price targets by Wall Street analysts. Short-term chip demand for data centers and an uptick in orders from Chinese firms, concerned about impending stricter regulations, have contributed to these upward adjustments.

 

Piper Sandler analyst Harsh Kumar also underscored these factors when raising his price target from $450 to $500 earlier this week.

 

Notably, both Bryson and Kumar's outlooks are not the most optimistic on Wall Street. According to FactSet data, the average price target for Nvidia stands at $529.60.