NVIDIA Stock (NVDA) Surges After Strong Earnings Report
After NVIDIA’s long-awaited first-quarter earnings report, concerns about the semiconductor giant quickly dissipated as the company exceeded expectations. The tech giant reported adjusted earnings per share of $6.12, beating the consensus target of $5.59, and generated sales of $26.04 billion, surpassing the expected $24.65 billion. Management also shared they expect revenue to reach $28 billion in the second quarter, higher than the anticipated $26.61 billion.
Various technology companies, including Microsoft and Amazon, ordered billions of dollars worth of graphics processing units (GPUs) from NVIDIA for artificial intelligence (AI) applications. In response to the positive earnings report, JPMorgan Chase increased its price target on NVDA stock to $1,150 from $850, maintaining an “overweight” rating. Analyst Harlan Sur commended Nvidia’s broad customer demand and strong growth in enterprise verticals.
Prior to the earnings release, concerns arose when Amazon Web Services (AWS) reportedly halted orders of Nvidia’s advanced chip called “Grace Hopper” and opted to wait for the next Blackwell processor. However, AWS clarified that this shift only applied to a single supercomputer project they were developing with Nvidia. Analysts were worried about potential disruptions in the product cycle and supply chain inefficiencies, but Nvidia’s robust financial performance reassured investors.
Analyst Stacy Rasgon raised her price target on NVDA shares to $1,300, emphasizing that the positive momentum for Nvidia shows no signs of slowing down. Overall, analysts are optimistic about Nvidia’s future growth prospects and the continued demand for its products.
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https://investorplace.com/2024/05/jpmorgan-just-raised-its-price-target-on-nvidia-nvda-stock/
