Despite a brief drop in Nvidia shares following the earnings report, the stock rebounded and rallied to a record high in Thursday's trading session. Rosenblatt Securities has the highest Wall Street price target for Nvidia at $220, a potential 52% increase from the stock's price on Thursday morning. Even DA Davidson, which has been neutral on Nvidia due to valuation concerns, raised its price target from $90 to $135. The average price target for Nvidia is now around $168 per share, up from $150 before the earnings release.
Key takeaways:
- Nvidia's third-quarter earnings beat average estimates but fell short of the highest expectations, prompting Wall Street analysts to raise their price targets for the stock.
- The potential for stock buybacks and Nvidia's competitive edge are boosting analysts' confidence, with the company repurchasing $11 billion worth of its own stock in the third quarter.
- Analysts anticipate a sales boom with the release of Nvidia's next-generation Blackwell chip, with JPMorgan boosting its Nvidia price target to $170 from $155 and Goldman Sachs increasing its price target to $165 from $150.
- Despite a drop in Nvidia shares by as much as 5.5% in after-hours trading on Wednesday, the stock rebounded and rallied as much as 5% to a record high in Thursday's trading session, representing a more than $200 billion swing in market value.