Proactive Investors - NVIDIA Corp (NASDAQ:NVDA) shares have been a top performer on the Nasdaq thus far in 2023, surging 230% year to date as of Thursday’s close, as the chipmaker’s market valuation has now surpassed $1 trillion.
On Wednesday, NVIDIA reported second-quarter fiscal 2024 earnings of $2.70 per share, surpassing the $2.08 consensus forecast, on better-than-anticipated revenue of $13.51 billion that was at the top end of the company’s own guidance.
NVIDIA also expects $16 billion in sales for its next quarter, better than its original $12.6 billion forecast.
And still, analysts see further upside for NVIDIA’s stock.
“NVDA blew investor expectations away again,” Wedbush analysts wrote in a note to clients.
“Results not only substantially exceeded our/prior Street consensus estimates, but once again the company's outlook implies Data Center revenues in CQ3 will grow at a faster rate than even the most ambitious forecasts had anticipated.”
The analysts boosted their target price on NVIDIA stock to $600 per share from $490 previously.
But they weren’t the only ones on Wall Street bullish on NVIDIA’s prospects.
Goldman Sachs (NYSE:NYSE:GS) analysts also raised their target price on NVIDIA from $495 to $605, expecting strong generative artificial intelligence demand and improving supply chain to continue for the chipmaker, but cautioned that competition from large cloud service providers and other semiconductor companies could be coming.
Analysts at Susquehanna, meanwhile, were more muted in their optimism, increasing their target price by a mere $25 to $600 per share despite the company recording “back-to-back miraculous quarters,” as its outlook “destroyed estimates” for growth of AI products.
“Given the tremendous DC (Data Center) beat, we are now comfortable with a $70B DC estimate for 2024. We imagine the buy-side is already at $80B+,” they wrote.
And, Morgan Stanley (NYSE:NYSE:MS) analysts also lifted their price target on NVIDIA stock from $500 to $630 per share, noting that data center revenue showed “remarkable growth.”
“Last quarter was the first time in semis history that we saw a company guide revenues $4 billion above consensus, with admittedly higher expectations this quarter,” the analysts wrote.
They added that it feels early “in a longer runway” when it comes to Nvidia’s growth.
That said, analysts at Rosenblatt were the most optimistic, upping their price target for the company from $800 to $1,100 per share, which would make Nvidia the second-most valuable company in the world, behind Apple (NASDAQ:AAPL), with a $2.7 trillion market capitalization.