The Santa Clara, California- based multinational technology company, Nvidia, is expected to report its third-quarter earnings of $1.11 per share, which represents a year-over-year decline of over 60% from $2.91 per share seen in the same period a year ago.
The company, which designs graphics processing units for the gaming and professional markets, as well as system on a chip unit for the mobile computing and automotive market would post year-over-year revenue growth of over 40% to $6.8 billion.
According to Oppenheimer analyst Rick Schafer, Nvidia will report above-consensus October quarter results, lifting its price target to $350 from $235 and rating the company “outperform”.
“Supply constraints continue to weigh on the group, though we see Nvidia (NVDA), a top semi-supplier, as better positioned to secure capacity. The company’s leading soup-to-nuts software/hardware platform solidifies its AI accelerator dominance,” Oppenheimer analyst Rick Schafer wrote in his report, reported by Reuters.
Nvidia Stock Price Forecast
Twenty-three analysts who offered stock ratings for Nvidia in the last three months forecast the average price in 12 months of $282.38 with a high forecast of $400.00 and a low forecast of $185.00.
The average price target represents a -7.08% change from the last price of $303.90. From those 23 analysts, 21 rated “Buy”, two rated “Hold” while none rated “Sell”, according to Tipranks.
Technical analysis suggests it is good to buy now as 100-day Moving Average, and 100-200-day MACD Oscillator signals a strong buying opportunity.
Several other analysts have also updated their stock outlook. Evercore ISI raised the target price to $350 from $250. Citigroup lifted the price target to $350 from $223. Wedbush cut to neutral from outperform and upped the target price to $300 from $220. Susquehanna increased the target price to $360 from $250.
Analyst Comments
“NVIDIA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave. It is also benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive a user base. Further, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon,” noted analysts at ZACKS Research.
“Additionally, collaboration with Daimler-owned Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. The stock has outperformed the industry over the past year. However, management expects the COVID-19 pandemic to negatively impact near-term revenues. Moreover, the U.S.-China trade war remains a key concern.”
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This article was originally posted on FX Empire
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