Nvidia shares have edged lower on Monday despite still being on track to add more than $350 billion in value this month. The company’s third-quarter earnings report is set for next Wednesday, with analysts expecting a massive year-over-year revenue surge of 82% to nearly $33 billion.
Nvidia has already surpassed Apple as the world’s most valuable company measured by market capitalization and replaced struggling chipmaker Intel in the Dow Jones Industrial Average. Its 2024 gain of over 205% is stunning.
The company’s legacy Hopper chips and new Blackwell processors are driving demand, with ongoing revenue growth expected to top $32.5 billion this quarter. Nvidia’s grip on the AI-accelerator market means it will also be guiding investors towards impressive revenue gains next year.
UBS analysts predict that hyperscalers – including Google, Microsoft, Amazon, and Meta Platforms – will spend $267 billion on capital projects tied to new technologies next year, a 33.5% increase from this year’s forecast.
Demand for AI chips is accelerating, with even Tesla expecting to spend around $11 billion this year largely due to investments in AI compute. Analyst Harsh Kumar at Piper Sandler lifted his price target on Nvidia by $35 to $175 a share, citing the company’s potential to capture most of the growing market for AI accelerators.
Kumar expects modest revenue beats over the coming months but anticipates more AI-powered growth into 2025, driven by supply constraints.
Source: https://finance.yahoo.com/news/analysts-revisit-nvidia-stock-price-115507314.html