Despite recent declines, analysts remain bullish on Nvidia's shares, with 60 buy ratings, five holds, and one sell. The average 12-month price target is about $734, implying an 8% gain. Some investors are ready to seize the opportunity should shares falter after Wednesday's announcement. Nvidia's forward expectations are so high that its valuation still appears relatively inexpensive, trading at roughly 32 times forward earnings, compared to about 25 for the Nasdaq 100.
Key takeaways:
- Nvidia Corp.’s market-leading advance has left even the bulls questioning if an earnings beat will be enough to propel the AI chipmaker’s shares higher.
- Goldman Sachs Group Inc.’s trading desk has called Nvidia “the most important stock on planet earth,” given its outsize influence on equity gains this year.
- Nvidia boasts a market capitalization of about $1.7 trillion and has the third-highest weighting in the S&P 500, behind only Microsoft Corp. and Apple Inc.
- Wall Street expects another banner quarter for Nvidia, with more than $20 billion in revenue, a jump of nearly 240% from a year earlier and the third straight period of triple-digit-percent gains.