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Expectations are high ahead of Nvidia’s earnings on Wednesday.
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Next week’s second quarter earnings are highly anticipated, to say the least. Wedbush analyst Matt Bryson thinks the chipmaker will report another batch of blowout results, but said the amount of outperformance may not be significant.
The analyst said he expected
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(Video: NVDA) to beat expectations and deliver a “strong outlook” when it releases on Wednesday. The company is so dominant in AI, Bryson said, that Nvidia’s results and forecasts wouldn’t even need to max out on Wall Street’s projections to satisfy investors. He said that if the outlook for the current quarter is less optimistic than expected, the market is likely to look forward to potential strength in the coming quarters.
“With demand for AI training rising exponentially last quarter and no other silicon supplier now able to supply partial quantities within Nvidia’s production volumes, we believe any unmet demand will be pushed into future quarters fueling future sales,” EPS said. .
Bryson added that Wedbush remains “very optimistic” about the company’s medium-term future. He maintained an Outperform rating on the stock with a $490 price target, a call that would mean a gain of 13% from Thursday’s closing level.
Nvidia has pulled off a number of targeted price increases from Wall Street in recent days as attention has turned to its earnings. Near-term demand for its chips in the data center business, as well as increased orders from Chinese companies worried about tighter restrictions ahead, were among the reasons.
Piper Sandler analyst Harsh Kumar cited the two factors when he raised his price target to $500 from $450 earlier this week.
Bryson and Kumar aren’t even on the more optimistic end of the scale on Wall Street. The average price target for Nvidia is $529.60, according to FactSet data.
The stock had gained 197% in 2023 through Thursday’s close, and was down 3.7% at $417.40 in early trading Friday.
Write to Callum Keown at callum.keown@barrons.com