Latest news with #JamesSchneider
Yahoo
11-08-2025
- Business
- Yahoo
Goldman Sachs revamps Nvidia stock price target ahead of earnings
Goldman Sachs revamps Nvidia stock price target ahead of earnings originally appeared on TheStreet. Wall Street's favorite AI chipmaker, Nvidia () , faces a key earnings test later this month, and Goldman Sachs just recalibrated its expectations. The reset comes at a time when investor sentiment has swung bullish, with hyperscaler spending and China market developments being a core focus. Goldman Sachs' analysts are flagging key levers that could potentially dictate Nvidia stock's path ahead as it continues racking up even bigger gains. Big expectations for Nvidia's Q2 Nvidia is set to report its fiscal Q2 (July quarter) earnings after the closing bell on August 27, 2025, with big expectations in play. Wall Street expects Nvidia to post a non-GAAP EPS of $1.00, GAAP EPS of $0.93, and revenue of $45.70 numbers represent a massive jump from last year's $30.04 billion in revenue and $0.68 EPS. For perspective, Nvidia guided Q2 sales to around $45 billion, plus or minus 2%, factoring in lost sales from previously stalled H20 GPU shipments to China. Here's what investors will be watching in particular: Blackwell ramp: Investors will want the scoop on GB200/NVL systems rollout, particularly when customers will get their first units. They'll also want to know how quickly the large rack-scale systems (NVL36/NVL72) are being adopted and whether there's a positive impact on sales. These systems are bigger and attract higher average selling prices (ASP). China licensing: The U.S. greenlit H20/MI308 GPU sales to China, but will be taking a 15% cut of those sales. Investors will want to know how much China could add to sales in Q3 and beyond, and the impact on profit margins in Q2. Gross margins: After a large one-time charge linked to unsold H20 chips in the previous quarters, Nvidia's adjusted gross margin was 71.3%. Management expects margins to claw back to the mid-70% range later this year, which makes their guidance all the more important. Networking: Q1 networking revenue came in at a superb $4.9 billion. Growth here could be a sign of broader adoption of GB200 systems and AI data center infrastructure. AI capex signals: Big tech remains relentless in its AI spending, with Google raising full-year capex to $85 billion, and Microsoft expecting $30 billion in Q3. Hence, any link to Nvidia's order backlog will be critical. Software monetization: Updates on Nvidia's AI Enterprise platform and NIM microservices, especially through Amazon's AWS Marketplace, could offer more insights into a new recurring revenue engine. So with the sentiment already sky-high, Nvidia will need to deliver a strong beat-and-raise quarter to keep the rally going. Goldman lifts Nvidia price target as earnings loom Goldman Sachs just gave a bullish nod to Nvidia heading into its fiscal Q2 results. Analyst James Schneider raised his price target from $185 to $200, representing roughly a 9.5% potential upside from current levels while keeping a buy rating. Schneider feels the investor sentiment is highly bullish, with most upbeat over upcoming results. This elevated optimism, though, sets a much higher bar for Nvidia's second-half commentary and guidance to the tougher comps and sky-high expectations, Schneider expects a 'clean beat-and-raise quarter.' He feels Nvidia's stock reaction will have everything to do with guidance exceeding expectations and whether sales to China are part of the estimates. Schneider also raised Datacenter sales estimates by nearly 8% on average, citing stronger-than-expected hyperscaler spending and mid-quarter data showing robust AI demand. Also, his Q2 and Q3 revenue projections of $41.9 billion and $51.5 billion are 2% and 8% above Mr. Market's consensus, respectively. He adds that with China sales back online, Nvidia could see an extra $20 billion in revenue and $0.40 in EPS by FY27. In the near term, Schneider feels that investors will be keenly following how Blackwell chips ramp outside China. Moreover, they'll also be interested in how China sales might impact margins, and the direction of gross margins in the second half. Looking further ahead, Schneider expects the market's focus in late 2025 will shift toward the potential direction for 2027. His FY27 EPS forecast is $6.75, and he believes much of 2026's upside is already priced in, making future growth signals critical. Nvidia's rally fueled by a string of blowout quarters Nvidia's stock has been on quite the run this year, up roughly 54% in the past three months and almost 40% over the past six. For the year, Nvidia stock is up an emphatic 72%, with its powerful momentum having everything to with its incredible earnings streak. The company delivered 10 straight quarterly EPS beats, consistently beating revenue estimates as AI infrastructure demand continues to impress. More News: Jim Cramer delivers straight talk on tricky S&P 500 market Bank of America drops shocking price target on hot weight-loss stock post-earnings JPMorgan drops 3-word verdict on Amazon stock post-earnings In fiscal Q1 2026 (April 2025), Nvidia posted earnings of $0.81 per share, beating by $0.06, on sales of $44.06 billion (up 69% year-over-year). Similarly, in fiscal Q4 2025, the company delivered $0.89 EPS (beat $0.04) on $39.33 billion (up 77.9% YOY), while fiscal Q3 2025 hit $0.81 on $35.08 billion (up 93.6% YOY). The real momentum kicked off in mid-2023, with year-over-year sales surging at triple-digit growth rates. Also, even in softer markets, Nvidia blew past expectations. Now, quarterly sales are more than seven times early-2023 levels, highlighting the sheer scale of its Sachs revamps Nvidia stock price target ahead of earnings first appeared on TheStreet on Aug 11, 2025 This story was originally reported by TheStreet on Aug 11, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-08-2025
- Business
- Yahoo
Goldman Sachs revamps Nvidia stock price target ahead of earnings
Goldman Sachs revamps Nvidia stock price target ahead of earnings originally appeared on TheStreet. Wall Street's favorite AI chipmaker, Nvidia () , faces a key earnings test later this month, and Goldman Sachs just recalibrated its expectations. The reset comes at a time when investor sentiment has swung bullish, with hyperscaler spending and China market developments being a core focus. Goldman Sachs' analysts are flagging key levers that could potentially dictate Nvidia stock's path ahead as it continues racking up even bigger gains. Big expectations for Nvidia's Q2 Nvidia is set to report its fiscal Q2 (July quarter) earnings after the closing bell on August 27, 2025, with big expectations in play. Wall Street expects Nvidia to post a non-GAAP EPS of $1.00, GAAP EPS of $0.93, and revenue of $45.70 numbers represent a massive jump from last year's $30.04 billion in revenue and $0.68 EPS. For perspective, Nvidia guided Q2 sales to around $45 billion, plus or minus 2%, factoring in lost sales from previously stalled H20 GPU shipments to China. Here's what investors will be watching in particular: Blackwell ramp: Investors will want the scoop on GB200/NVL systems rollout, particularly when customers will get their first units. They'll also want to know how quickly the large rack-scale systems (NVL36/NVL72) are being adopted and whether there's a positive impact on sales. These systems are bigger and attract higher average selling prices (ASP). China licensing: The U.S. greenlit H20/MI308 GPU sales to China, but will be taking a 15% cut of those sales. Investors will want to know how much China could add to sales in Q3 and beyond, and the impact on profit margins in Q2. Gross margins: After a large one-time charge linked to unsold H20 chips in the previous quarters, Nvidia's adjusted gross margin was 71.3%. Management expects margins to claw back to the mid-70% range later this year, which makes their guidance all the more important. Networking: Q1 networking revenue came in at a superb $4.9 billion. Growth here could be a sign of broader adoption of GB200 systems and AI data center infrastructure. AI capex signals: Big tech remains relentless in its AI spending, with Google raising full-year capex to $85 billion, and Microsoft expecting $30 billion in Q3. Hence, any link to Nvidia's order backlog will be critical. Software monetization: Updates on Nvidia's AI Enterprise platform and NIM microservices, especially through Amazon's AWS Marketplace, could offer more insights into a new recurring revenue engine. So with the sentiment already sky-high, Nvidia will need to deliver a strong beat-and-raise quarter to keep the rally going. Goldman lifts Nvidia price target as earnings loom Goldman Sachs just gave a bullish nod to Nvidia heading into its fiscal Q2 results. Analyst James Schneider raised his price target from $185 to $200, representing roughly a 9.5% potential upside from current levels while keeping a buy rating. Schneider feels the investor sentiment is highly bullish, with most upbeat over upcoming results. This elevated optimism, though, sets a much higher bar for Nvidia's second-half commentary and guidance to the tougher comps and sky-high expectations, Schneider expects a 'clean beat-and-raise quarter.' He feels Nvidia's stock reaction will have everything to do with guidance exceeding expectations and whether sales to China are part of the estimates. Schneider also raised Datacenter sales estimates by nearly 8% on average, citing stronger-than-expected hyperscaler spending and mid-quarter data showing robust AI demand. Also, his Q2 and Q3 revenue projections of $41.9 billion and $51.5 billion are 2% and 8% above Mr. Market's consensus, respectively. He adds that with China sales back online, Nvidia could see an extra $20 billion in revenue and $0.40 in EPS by FY27. In the near term, Schneider feels that investors will be keenly following how Blackwell chips ramp outside China. Moreover, they'll also be interested in how China sales might impact margins, and the direction of gross margins in the second half. Looking further ahead, Schneider expects the market's focus in late 2025 will shift toward the potential direction for 2027. His FY27 EPS forecast is $6.75, and he believes much of 2026's upside is already priced in, making future growth signals critical. Nvidia's rally fueled by a string of blowout quarters Nvidia's stock has been on quite the run this year, up roughly 54% in the past three months and almost 40% over the past six. For the year, Nvidia stock is up an emphatic 72%, with its powerful momentum having everything to with its incredible earnings streak. The company delivered 10 straight quarterly EPS beats, consistently beating revenue estimates as AI infrastructure demand continues to impress. More News: Jim Cramer delivers straight talk on tricky S&P 500 market Bank of America drops shocking price target on hot weight-loss stock post-earnings JPMorgan drops 3-word verdict on Amazon stock post-earnings In fiscal Q1 2026 (April 2025), Nvidia posted earnings of $0.81 per share, beating by $0.06, on sales of $44.06 billion (up 69% year-over-year). Similarly, in fiscal Q4 2025, the company delivered $0.89 EPS (beat $0.04) on $39.33 billion (up 77.9% YOY), while fiscal Q3 2025 hit $0.81 on $35.08 billion (up 93.6% YOY). The real momentum kicked off in mid-2023, with year-over-year sales surging at triple-digit growth rates. Also, even in softer markets, Nvidia blew past expectations. Now, quarterly sales are more than seven times early-2023 levels, highlighting the sheer scale of its Sachs revamps Nvidia stock price target ahead of earnings first appeared on TheStreet on Aug 11, 2025 This story was originally reported by TheStreet on Aug 11, 2025, where it first appeared.
Business Insider
11-08-2025
- Business
- Business Insider
Goldman Sachs Sets the Bar for Nvidia Stock Ahead of Earnings
Nvidia (NASDAQ:NVDA) stock has left its early-year slump firmly behind, with shares now regularly setting new highs. Investor confidence has rebounded after the company navigated past headwinds, including the now-reversed export restrictions on AI chips to China that had threatened its access to the Chinese market. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. With the chip giant slated to report fiscal second quarter (July quarter) results on August 27, Goldman Sachs analyst James Schneider notes that sentiment among investors is overwhelmingly bullish heading into the print. 'We believe expectations are high and investors we have spoken with are almost universally long heading into the print – which we think raises the degree of difficulty for 2H commentary and guidance,' the analyst said. Even so, Schneider is looking for a 'clean beat-and-raise quarter,' saying the stock's reaction will likely hinge on how much the guidance tops expectations and whether the China sales situation factors in. To that end, the analyst has boosted his Datacenter segment revenue forecasts by about 8% on average, citing stronger-than-expected hyperscaler CapEx and intra-quarter data that points to robust AI demand. His projections for FY2Q and FY3Q – $41.9 billion and $51.5 billion, respectively – are 2% and 8% above consensus, and he sees the resumption of China sales potentially adding another ~$20 billion in revenue and $0.40 in EPS by FY27. From here, Schneider sees three main factors that could sway the stock in the near term: the pace of the Blackwell ramp (particularly outside China), any new detail on how China sales could influence margins, and the trajectory of gross margins in the second half, especially with Nvidia set to benefit from roughly $2.5 billion in previously reserved H20 inventory. Looking further out, the analyst draws a parallel to prior years, anticipating that the market's focus in the latter part of 2025 will gradually shift from 'How good can 2026 be?' to 'What's the direction of travel in 2027?' With his FY27 EPS estimate at $6.75, Schneider believes much of the 2026 upside is already reflected in the stock, making the next wave of growth signals critical. For now, Schneider is sticking with a Buy rating on Nvidia shares and raising his price target from $185 to $200, suggesting a potential 9.5% upside from current levels. (To watch Schneider's track record, click here) That Buy rating is echoed by 33 other analysts, with only 3 Holds and 1 Sell rating tempering the Strong Buy consensus. However, the $186.24 average target suggests the shares will stay rangebound for the time being. Considering the discrepancy, watch out for either more price target hikes or rating downgrades in the coming months. (See NVDA stock forecast) To find good ideas for AI stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Telegraph
09-08-2025
- Politics
- Telegraph
Corbyn told to take inspiration from Lenin
Jeremy Corbyn's new party could take inspiration from the ideas of Lenin, one of his closest advisers has said. James Schneider, who served as Labour's director of strategic communications under Mr Corbyn, made the comments in an interview about the direction the new Left-wing movement, which was founded in July and has the working title of Your Party, could take. He told the New Left Review: 'I've been working on this for about a year now, and I think there are structural factors which make it difficult to launch anything.' Mr Schneider said the party could initially be led by 'a small group of closely aligned, politically advanced people, who can make decisions collectively'. He said: 'There have been many communist parties throughout history, which have been formed by 12 or so individuals sitting around a table, which in short order became mass vehicles.' He also suggested that the party could take inspiration from Lenin, the leader of the Russian Revolution, by thinking about what 'Lenin today' might do. He told Oliver Eagleton, who interviewed him for the New Left Review: 'You ran a short, thought-provoking piece by Dylan Riley the other week titled Lenin in America, which, following [Antonio] Gramsci, argued that Lenin today would pursue a 'productive and creative relationship to the specific national-democratic revolutionary political culture in which one operates'. The British Left needs to be thinking along these lines.' Lenin established the world's first communist state in Russia in 1917 as head of the Bolshevik party. He overthrew the provisional government, established after the Tsar was ousted and made up of liberals and moderate socialists, in a military coup, and dismissed the democratically elected Constituent Assembly to impose one-party rule on the country. Lenin's government indulged in state violence against its opponents, including the notorious 'hanging order' in which Lenin told his revolutionary comrades to publicly execute no fewer than 100 rebels in each of the rebellious districts of Russia, referring to them as 'the rich and the bloodsuckers'. Andrew Murray, another of Mr Corbyn's former advisers, also invoked Lenin when discussing the new party. In an interview with the New Left Review this week, he said: 'As for Leninism: that requires a much higher degree of ideological militancy and unity from the outset than we are likely to get with this new party.' Mr Murray cited Karl Marx and Friedrich Engels's Communist Manifesto when discussing the direction of the new party. He said: 'The Communist Manifesto enjoins socialists to first of all organise the proletariat as a class – and this task clearly needs recapitulating. 'The old organisations and institutions, both formal ones within the labour movement and informal ones within communities, have been broken apart over the past forty years. Reversing this, even partially, is an imperative for moving towards socialism.' Summarising his ambitions for the new party, Mr Schneider said: 'My dream is a party that hits with the same impact as Turn the Page, the opening track on The Streets' debut album Original Pirate Material. 'Something you've never heard before, yet instantly recognisable; unmistakably British and rooted in everyday life, from the pubs to the pavements. 'A sound – or in our case, a politics – that effortlessly blends cultures and traditions, anchored in class and community but moving forward with confidence and style. We need to inhabit this sort of national-popular register. 'To put it in a more theoretical way, the efficacy of this kind of politics stems from unlocking the potential progressive valence of the 'national' dimension of the capital-nation-state triad.' Mr Schneider has given a number of interviews about the new venture and is understood to be involved in plans for the party's future. He was a co-founder of the Left-wing group Momentum, which supported Mr Corbyn's leadership of the Labour party. After leaving his position at the Labour Party following its defeat at the 2019 general election, Mr Schneider became Communications Director at Progressive International, a global network of Left-wing activists. Mr Corbyn established his new party with Zarah Sultana, a former Labour MP who now sits as an independent. It was launched in July with the placeholder name Your Party. Members will decide its name at an inaugural conference in autumn.
Business Insider
09-08-2025
- Business
- Business Insider
Why Are Some Analysts Cautious on AMD Stock Despite AI Hype?
Chipmaker Advanced Micro Devices (AMD) recently reported its results for the second quarter of 2025, which failed to live up to investors' expectations. While AMD's Q2 revenue surpassed the Street's estimates, its earnings were in line with expectations, with investors concerned about the decline in artificial intelligence (AI) business revenue. Many analysts maintained their bullish stance on AMD stock after the Q2 print. However, some analysts expressed concerns about AMD's AI/data center revenue and higher expenses. In fact, Wall Street's average price target indicates a limited upside potential from current levels. AMD stock has rallied 43% so far this year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Heading into Q2 results, the hype around AMD's AI business was very high, especially after the Advancing AI event. AMD highlighted its new GPUs (graphics processing units), which revived investors' hopes about the company's prospects after persistent concerns about it lagging behind rival Nvidia (NVDA) in the AI race. However, AMD's Q2 results, especially the data center business growth and AI business revenue decline, disappointed investors. AMD cited U.S. export restrictions that eliminated MI308 sales to China and the transition to its next-generation chips as the reasons for the decline in Q2 AI business revenue. AMD's Q2 Results Draw Some Concerns Despite the mixed Q2 results, AMD bulls are confident about the company's potential to grow in both CPU and GPU markets and capture AI opportunities. However, some analysts remain cautious due to the ongoing challenges. For instance, Goldman Sachs analyst James Schneider raised his price target for AMD stock to $150 from $140, but reiterated a Hold rating. The 4-star analyst noted that AMD is seeing strong traction with its Data Center GPU solutions. In particular, Schneider expects the MI355 offering to drive strong double-digit quarter-over-quarter growth in the Data Center segment in the third quarter and continued sequential growth in Q4 2025. While Schneider remains constructive on AMD's ability to drive significant market share gains in the PC and enterprise server markets in the near term, he retains a neutral stance on the stock as he is 'more guarded' on the company's ability to drive scale in Data Center GPUs over time. Also, he thinks that AMD's earnings power is likely to be hampered by the significant operating expenses ramp needed to support its AI software and systems efforts. Meanwhile, Morgan Stanley analyst Joseph Moore lowered his price target for AMD stock to $168 from $185 and maintained a Hold rating. The 5-star analyst stated that the quarter was solid across segments and revenue continues to be 'quite strong, but it's not clear that will be enough to keep the bulls in charge of the narrative.' He contends that AMD's commentary on the timing of resumption of China shipments was 'more vague than expected.' Overall, Moore slashed his price target for AMD stock to reflect lower conviction in China demand and a lack of AI-related upside. Is AMD Stock a Buy or Sell Now? Overall, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 25 Buys and 12 Holds. The average AMD stock price target of $180.78 indicates 4.6% upside potential from current levels.
