UPDATE: Nvidia’s (NASDAQ: NVDA) share price skyrocketed by 5% yesterday, November 20, 2023, following astounding third-quarter earnings that exceeded all expectations. The tech giant’s performance signals a robust demand for AI computing hardware, driving analysts to revise their price targets significantly upward.
Nvidia reported a staggering $57 billion in revenue for the third quarter, a remarkable 62% increase year-on-year, surpassing the anticipated $54.8 billion. The data center sector alone saw revenue soar by 66% to $51.2 billion, compared to the expected $48.6 billion. Non-GAAP net income for the quarter reached $31.8 billion, translating to earnings per share of $1.30, up from $0.81 a year earlier.
The company’s market capitalization now approaches $5 trillion, solidifying its position as the largest business globally. This explosive growth is particularly impressive given Nvidia’s already dominant market status. CFO Colette Kress confirmed that Nvidia anticipates quarterly revenue of $65 billion for Q4, exceeding prior estimates of $61.3 billion. Notably, Nvidia has secured an astonishing $500 billion in revenue from its current chip, Blackwell, and the forthcoming chip, Rubin, projected through the end of 2026.
Nvidia’s Founder and CEO Jensen Huang addressed concerns about an AI bubble, stating, “From our vantage point, we see something very different.”
In the wake of these blockbuster earnings, analysts are scrambling to adjust their price targets. Major firms have significantly raised their forecasts, reflecting newfound confidence in Nvidia’s potential. Here’s a snapshot of the updated targets:
– Benchmark: $250 (up from $220)
– Truist: $255 (up from $228)
– Barclays: $275 (up from $240)
– Susquehanna: $250 (up from $230)
– Evercore ISI: $352 (up from $261)
– Citi: $270 (up from $220)
Evercore’s new target of $352 is particularly noteworthy, representing an approximately 80% increase over Nvidia’s current share price.
Looking ahead, analysts suggest Nvidia’s stock could reach $250 by 2026, contingent on sustained demand for AI hardware and favorable market sentiment towards tech shares. However, volatility remains a concern, with predictions indicating potential dips before significant climbs.
As Nvidia continues to lead the charge in the AI revolution, industry watchers will be keeping a close eye on further developments. With analysts expressing bullish sentiments, now may be an opportune moment for investors to consider Nvidia shares, especially if prices fluctuate.
Stay tuned for more updates as Nvidia’s performance continues to unfold.
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