Expectations are running high for Nvidia ahead of the company's fiscal second-quarter earnings report due late Wednesday. Meanwhile, Nvidia stock is near a buy point.
Nvidia is the main arms dealer in the artificial intelligence market, selling chips and complete computer systems for AI data centers. It has posted four straight quarters of triple-digit percentage gains in sales and earnings on a year-over-year basis amid white-hot demand for its AI processors.
For its fiscal Q2 ended July 28, analysts polled by FactSet expect Nvidia to earn 65 cents a share, up 141% year over year, on sales of $28.72 billion, up 113%. That would mark the company's fifth straight quarter of triple-digit gains.
In addition to the top- and bottom-line numbers, analysts will be focused on supply constraints for Nvidia's current-generation Hopper processors and possible delays for its next-generation Blackwell processors.
'Drop-The-Mic Performance' Expected
Wedbush Securities analyst Daniel Ives raised the hype level for the Nvidia earning report late Thursday. In a client note, he called the Nvidia report the "most important tech earnings in years."
"There is one company in the world that is the foundation for the AI revolution … and that is Nvidia," Ives said.
He noted that Nvidia Chief Executive Jensen Huang is in the best position to discuss overall enterprise AI demand.
"In a nutshell, we expect another drop-the-mic performance from Nvidia," Ives said.
His colleague, Wedbush analyst Matt Bryson on Friday raised his price target on Nvidia stock to 138 from 120 and kept his outperform rating.
Nvidia Stock In Consolidation Pattern
On the stock market today, Nvidia stock rose 4.6% to close at 129.37.
Nvidia stock has been consolidating for the past 10 weeks at a buy point of 140.76, according to IBD MarketSurge charts.
Evercore ISI analyst Mark Lipacis late Thursday raised his price target on Nvidia stock to 150 from 145 and maintained his outperform rating.
"We continue to view Nvidia as our top Tectonic Shift in Computing pick, with a full-stack ecosystem that positions it to capture 70-80% of the value created in the parallel processing era," Lipacis said in a client note.
Elsewhere on Wall Street, Rosenblatt Securities analyst Hans Mosesmann predicted another beat-and-raise report from Nvidia. The wild card is how supply constrained Nvidia is for its Hopper series products, he said in a client note Thursday. Mosesmann rates Nvidia stock as buy with a price target of 200.
Nvidia stock is on three IBD lists: IBD 50, Leaderboard and Tech Leaders.
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