UPDATE: Nvidia’s (NASDAQ: NVDA) stock surged by 5% on November 20, 2023, following the company’s blockbuster third-quarter earnings that exceeded all expectations. Analysts are now raising their price targets significantly as the demand for AI technology continues to skyrocket.
Nvidia reported a staggering 62% year-on-year revenue growth, hitting $57 billion for the quarter ending October 26. This robust performance showcases the booming demand for its AI computing hardware amid the ongoing technological revolution.
The company’s data center revenue also reached $51.2 billion, up 66% from last year, exceeding estimates of $48.6 billion. Nvidia’s non-GAAP net income soared to $31.8 billion, translating to earnings per share of $1.30, a remarkable increase from $0.81 a year earlier.
CEO Jensen Huang expressed confidence in the future, stating, “From our vantage point, we see something very different” regarding concerns about an AI bubble. Analysts are responding positively, with many adjusting their price targets upward significantly.
Looking ahead, Nvidia guided for a strong fourth quarter, projecting revenue of $65 billion, surpassing previous expectations of $61.3 billion. CFO Colette Kress announced that the company has secured $500 billion in revenue from its current chip, Blackwell, and the upcoming Rubin chip, with this revenue expected to flow in through the end of 2026.
Following the earnings report, various analysts have raised their price targets for Nvidia stock, reflecting heightened optimism about its future. Some noteworthy revisions include:
- Evercore ISI: Raised target to $352 from $261
- Barclays: Increased target to $275 from $240
- Truist: New target of $255, up from $228
With these updates, the highest target now stands approximately 80% above Nvidia’s current share price, highlighting the optimism surrounding the stock as the AI revolution progresses.
For investors considering Nvidia, the sentiment is cautiously optimistic. Analysts suggest that while Nvidia may not reach $250 in a straight line, the stock remains a compelling buy amid the ongoing demand for AI technologies.
This rapid upward shift in price targets and revenue forecasts highlights Nvidia’s pivotal role in the tech landscape, making it a focal point for investors and industry watchers alike. The market is abuzz with expectations as Nvidia continues to define the future of AI computing.
Stay tuned for ongoing updates as this story develops, and consider sharing this news to keep others informed about Nvidia’s impressive performance and future potential.
