Stifel remains optimistic about Nvidia ahead of the highly anticipated earnings release scheduled for this Wednesday. The financial firm has reaffirmed its overweight rating on Nvidia's stock while increasing its price target from $202 to $212. This new forecast suggests that Nvidia's shares could potentially rise by 19% from their closing price last Friday.
Analyst Ruben Roy highlighted the accelerating demand for Nvidia's GB300 platform as a significant catalyst for the company's growth. Roy noted, "Our supply chain discussions continue to point to expectations for ramping GB300 orders into year-end, even as sustained GB200 demand persists." He anticipates a modest beat in Nvidia's second-quarter results compared to market consensus, attributing this to cautious guidance, robust capital expenditure (CapEx) commentary from cloud service providers (CSPs), mitigated risks from the Chinese market, and healthy sales growth with minimal supply chain disruptions.
Nvidia's position in the market remains strong, according to Roy. He predicts that by the end of 2025, Nvidia will have a total addressable market exceeding $100 billion, with the possibility of this figure approaching $1 trillion in the long term. Despite the company's impressive performance this year, with shares rising 33%, Roy believes that Nvidia's stock remains an attractive investment at current levels.
"We continue to believe that Nvidia's leadership in AI infrastructure is unmatched, and we expect the specifications of the GB300, which boasts 50% higher FP4 performance, to remain best-in-class as the complexity of inference and reasoning increases," Roy stated. His analysis underscores the view that Nvidia's valuation remains appealing, especially in light of its sustained leadership in the AI sector.
As Nvidia prepares to report its earnings, investors and analysts on Wall Street are eagerly anticipating the results. Current data from LSEG indicates that 58 out of 65 analysts covering Nvidia rate the stock as either a buy or strong buy, showcasing a robust bullish sentiment surrounding the chipmaker. With such positive outlooks, Nvidia continues to be a focal point for investors looking to capitalize on the growing demand for advanced graphics processing units.
