NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Here's when Nvidia is expected to become the 3rd $3 trillion company 

Published 2024-05-23, 07:22 a/m
© Reuters
NVDA
-

Analysts at Needham & Company expect Nvidia (NASDAQ:NVDA) to be the third company to reach a $3 trillion market capitalization after the company's latest earnings, which topped expectations and saw the company issue upbeat guidance.

Nvidia reported Q1 EPS of $6.12, $0.53 better than the analyst estimate of $5.59, while revenue for the quarter came in at $26.04 billion, above the consensus estimate of $24.65 billion.

In addition, NVIDIA expects second-quarter 2025 revenue of $28 billion, plus or minus 2%, versus the consensus of $26.66 billion.

"NVDA delivered another strong beat and raise, well above our estimates but inline with more-bullish buy-side expectations," said Needham & Company.

In order for Nvidia to hit a $3 trillion market cap, Needham says the company's share price would need to reach $1,200, a mark they see it reaching. The firm raised its 12-month target to that level from $850 in its latest note, maintaining a Buy rating on the stock. 

Needham is not the only firm with a $1,200 or more price target on Nvidia, with at least 16 analysts seeing the stock climbing to those highs. 

Jefferies and Loop Capital also have $1,200 targets on Nvidia, while Wolfe Research has a $1,250 target, Evercore ISI has a target of $1,310, and Cantor Fitzgerald has a target price of $1,400 on the company's shares, representing a Street high. 

Following the Nvidia earnings report, Needham said: "H100 supply catching up to demand paired with constrained H200 and B100 supply may introduce some near-term product transition risk, but we would be buyers on any short-lived revenue deceleration."

They also believe "Blackwell's 100+ configurations demonstrates diversity of the platform," while "Sovereign AI is material (HSD $bn in FY25) and adds duration to the overall demand cycle."

The firm noted that Chinese data center revenue is down significantly and expected to remain depressed.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.