Here's What 5 Wall Street Analysts Have to Say About Nvidia's Earnings
Nvidia (NVDA) shares surged Thursday as the chipmaker's quarterly results impressed Wall Street, even as export controls took a bite out of China sales.
Nvidia's record-high sales exceeded analysts' estimates compiled by Visible Alpha, though earnings did not, as the company said it absorbed a $4.5 billion charge in the period due to restrictions on the export of its H20 chips to China.
The AI darling's stock was up nearly 5% in recent trading above $141, propelling Nvidia to surpass Microsoft (MSFT) as the world's most valuable company by market capitalization.
Here's what five analysts had to say about Nvidia's results:
Oppenheimer called Nvidia the 'best house on the best block' and said it's the best-positioned company in AI. The firm reiterated its "outperform" rating and $175 price target.
Bank of America said server racks of Nvidia's Blackwell AI chips are 'in full production,' with "every large hyperscaler" client now ramping close to 1,000 racks every week. The bank raised its price target to $180 from $160.
Morningstar analysts said they were "encouraged by Nvidia's revenue growth despite being blocked from selling H20 products." Blackwell supply and revenue 'expanded faster than we anticipated and should support higher long-term AI revenue," they added, raising their target to $140 from $125.
UBS noted the H20 curb was largely offset by Nvidia's gaming segment performing much better than expected, as the company's Blackwell chips are 'catalyzing an [AI PC] upgrade cycle.' UBS kept its "buy" rating and $175 price target.
Morgan Stanley analysts echoed the sentiment that Nvidia showed "acceleration of the business other than the China headwinds,' adding, 'everything should get better from here." The analysts raised their target to $170 from $160.
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