Financial analysts have been revising the price targets for the semiconductor manufacturer’s stocks in the wake of its impressive financial report. The shares of Nvidia (traded under NVDA) witnessed a 4.5% surge, reaching $492.56, during the early trading hours on Thursday. This surge was a direct response to the company’s quarterly earnings report and its positive outlook, both of which exceeded initial projections. Furthermore, Nvidia also assuaged concerns pertaining to supply limitations and demand from the Chinese market.
Here’s the perspective from Wall Street regarding Nvidia’s financial performance. Ruben Roy, an analyst from Stifel, highlighted that the company’s results not only met but exceeded the upper echelon of the so-called “whisper numbers.” These informal estimations, which often circulate within Wall Street before an earnings announcement, tend to be more optimistic than the consensus forecasts.
In a research note, Roy expressed, “We did not fully grasp the potential presented by the shift of around $1 trillion worth of established data-center infrastructure from general-purpose computing to accelerated compute architectures.”
In light of this, Roy decided to elevate his assessment of Nvidia from a Hold to a Buy, concurrently raising the target price from $440 to $600. Nvidia also proactively addressed several concerns regarding the sustainability of its progress. The company confidently stated its anticipation of a surge in product supply during the upcoming fiscal year. This assurance effectively quelled worries about its capacity to meet the escalating demand for AI chips.
