Nvidia’s (NASDAQ:NVDA) streak of beating and raising earnings expectations may come to an end, according to Stifel analyst Ruben Roy. In contrast to prior quarters, the estimate revision trajectory suggests lower expectations for the company’s fiscal fourth-quarter results.
Roy notes that sentiment appears different this time around, with a “wide range of outcomes” regarding the company’s timeline for meeting demand. While discussions around Blackwell’s demand remain largely positive, uncertainties about the company’s ability to meet these demands have led to mixed feedback from previous quarters.
The analyst is calling for revenue forecast of $37.5 billion and adjusted earnings per share (EPS) of $0.83 in Q4, which is slightly lower than the consensus estimate. However, Roy still believes that Nvidia’s prospects are well, citing underlying trends in AI infrastructure spend as a positive factor.
Nvidia is trading at 27x its FY2027 EPS estimate, below its five-year average multiple of 33x and far from its peak in late 2021. The analyst rates the stock as “reasonably valued” and upgrades it to Buy, with a $180 price target implying a potential gain of 38% over the next year.
With GTC just weeks away, Nvidia’s technology roadmap updates could serve as a catalyst for the stock. Most analysts are in line with Roy, rating NVDA a Strong Buy, suggesting shares will climb 37% higher over the next year.
Source: https://www.tipranks.com/news/the-countdown-begins-top-analyst-weighs-in-on-nvidia-stock-ahead-of-earnings