S&P 500 eases slightly from fresh record high after stronger economic growth
Investing.com -- Nvidia shares are down around 1.8% in premarket trading on Thursday after the chipmaker reported stronger-than-expected quarterly results and guidance, prompting analysts to raise price targets while noting ongoing uncertainty around China.
The company posted July-quarter revenue of $46.7 billion, ahead of consensus estimates of $46.2 billion, driven by 11–12% quarter-on-quarter growth in Blackwell GPU compute revenue to around $26 billion and a 46% surge in networking sales.
Nvidia guided October-quarter revenue to $54 billion, above the $53.4 billion consensus.
JPMorgan said the results reflected “solid Jul-Qtr revenue…primarily driven by 11-12% Q/Q growth in Blackwell GPU compute revenue… and sharply higher networking revenue (+46% Q/Q).”
The bank added that “H20 potentially provides a $2-5B (or more) upside revenue lever to FQ3, though this remains in question pending the resolution of ‘geopolitical issues.’” JPMorgan raised its Nvidia price target to $215 from $170 and reiterated its Overweight rating.
Morgan Stanley also highlighted the guidance, noting that “guidance for $54 bn ex China compares to our $52.5bn ex China, and buy side expectations of $54-55bn including $3 bn+ China — clear upside excluding the China variable.”
The bank lifted its price target for Overweight-rated Nvidia to $210 from $206.
KeyBanc told investors in a note that data center revenue “missed expectations as Compute was flat q/q, while Networking grew 46% q/q,” but raised its price target to $230, maintaining an Overweight stance on the stock.
DA Davidson moved its target to $195 from $135 while keeping a Neutral rating on Nvidia. The firm said the results were mixed, “with data center revenue coming in slightly lower than expected, and sentiment surrounding the quarter largely being driven by continued concern around the company’s ability to sell H20s into China.“
“That being said, our work around AI models, particularly on the algorithmic side, are leading us to increasingly believe that demand for compute is unlikely to subside in the foreseeable future, given trends we’re seeing in pre-training, post-training, and inference,” added DA Davidson analysts.
Meanwhile, Truist lifted its target to $228, saying Nvidia remains “the AI company.”
Despite the premarket dip, analysts broadly emphasised Nvidia’s strong positioning in AI infrastructure and long-term growth potential.