D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - Goldman Sachs has reiterated its Buy rating and $200.00 price target on Nvidia (NASDAQ:NVDA) stock, focusing on the company’s upcoming Blackwell architecture deployment. The semiconductor giant, currently valued at $4.38 trillion, has demonstrated remarkable growth with revenue surging 86% year-over-year.
Goldman Sachs analyst James Schneider highlighted three key focal points for investors: the shape of the Blackwell ramp in the second half of the year, the timing of China’s H20 chip ramp, and potential gross margin benefits from previously reserved H20 inventory. According to InvestingPro data, NVIDIA maintains a robust gross margin of 70.11%, reflecting strong pricing power in the semiconductor market.
The firm believes investor expectations are high heading into Nvidia’s quarterly earnings report, scheduled in 20 days, driven by the anticipated strong Blackwell ramp and upside to hyperscaler capital expenditure reports. InvestingPro analysis reveals over 20 additional key insights about NVIDIA’s financial health and market position.
Goldman Sachs expects Nvidia to deliver a "clean beat-and-raise quarter," with stock reaction likely depending on the level of upside to guidance and any impact from China operations.
The research note also mentioned the timing of Nvidia’s Rubin introduction in 2026 as a key consideration for investors, while the firm has increased its estimates for the semiconductor company.
In other recent news, Nvidia’s earnings and revenue developments have been notable. Hon Hai (TW:2317) Precision Industry Co., Nvidia’s primary server assembly partner, reported a slowdown in sales growth for July, with sales increasing by 7.25% to NT$613.8 billion ($20.5 billion). This growth rate was the slowest since January and fell short of analyst expectations, which had anticipated a 12.2% increase for the third quarter. Additionally, two Chinese nationals were arrested in California for allegedly exporting Nvidia AI chips to China without the necessary U.S. government licenses, as reported by the U.S. Justice Department and Bloomberg. This illegal export involved tens of millions of dollars worth of advanced Nvidia chips. On another front, Huawei Technologies announced plans to open-source its AI chip toolkit, intensifying competition with Nvidia. Meanwhile, retail investors tracked by Charles Schwab (NYSE:SCHW) shifted to buying Nvidia shares in July, reversing their selling trend from June. These developments highlight significant movements and challenges for Nvidia in the current market landscape.
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