Nvidia’s quarterly earnings have set a high bar, leaving Wall Street underwhelmed despite a strong display of beat-and-raise performance. The AI chip giant reported revenue that rose 78% year-over-year to $39.33 billion, beating forecasts by $1.17 billion.
Datacenter revenue was particularly impressive, growing 93% to $35.6 billion, driven by strong demand for Hopper-based platforms and Blackwell’s significant growth to $11 billion. While the growth rate has slowed from its previous quarters, it remains an attractive figure.
Nvidia’s adjusted gross margins also met expectations at 73.5%, while its earnings per share (EPS) beat forecasts. The company has reaffirmed its guidance for the next quarter, expecting revenue of $43 billion and adjusted gross margins of 71%.
Despite concerns around Blackwell’s ramp-up and potential sustainability issues, analysts remain bullish on Nvidia’s prospects. Analyst Joshua Buchalter rates NVDA shares a Buy, citing the company’s technological moat and leadership in accelerated computing.
The consensus among analysts is equally positive, with 38 Buys and 3 Holds, indicating a Strong Buy rating. The average price target stands at $178.66, suggesting potential returns of 49% over the next year.
Source: https://www.tipranks.com/news/buy-the-dip-says-cowen-on-nvidia-stock