① Wall Street analysts expect that with the release of Nvidia's next-generation Blackwell chip, a sales boom is imminent, they are raising their target prices one after another. ② Goldman Sachs expects Nvidia's revenue to exceed $200 billion next year and emphasizes its potential large-scale share repurchase plans.
AFP, November 22 (Editor Liu Rui) On Wednesday EST, Nvidia released its highly anticipated third quarter earnings report. Although the revenue and profit data in this financial report surpassed analysts' average expectations, it did not meet the highest expectations, and its revenue guidance for the fourth quarter was narrower than the lead expected by analysts compared to previous quarters. This caused Nvidia shares to plummet 5.5% in after-hours trading on Wednesday.
Despite this, Wall Street reacted positively to Nvidia's earnings report. Nvidia's stock price also turned red on Thursday afternoon, and finally closed up 0.53%. More than 20 investment firms and institutions on Wall Street have raised their target prices as analysts expect a sales boom to arrive with the release of Nvidia's next-generation Blackwell chip.
The moat has been stabilized
J.P. Morgan raised Nvidia's target share price from $155 to $170, emphasizing that the company has built a huge competitive moat around its business.
Harlan Sur, an analyst at J.P. Morgan Chase, wrote, “The team continues to maintain an edge 1- 2 steps ahead of the competition with its silicon/hardware/software platform and strong ecosystem. As time goes on, the team will maintain a positive pace of introducing new products and making more product segments, all of which are further distancing themselves.”
Goldman Sachs expects Nvidia's revenue to exceed $200 billion next year, so it raised its target share price from $150 to $165.
Even DA Davidson, who previously rated Nvidia as “neutral” due to valuation concerns, raised its price target from $90 to $135.
DA Davidson analyst Gil Luria wrote in the report: “Although management did not disclose Blackwell's situation after next quarter, they expect strong demand and limited supply, just like Hopper's supply is in short supply.”
Is a large-scale buyback on the way?
In addition to the positive factors mentioned by other peers, Goldman Sachs also emphasized that Nvidia also has a “secret trick” to help boost stock prices: a potential large-scale share repurchase program.
Nvidia bought back $11 billion worth of shares in the third quarter, up 188% from the same period last year. Goldman Sachs said it is expected that the company “will gradually increase its share repurchases”, reaching a cumulative total of $181 billion by 2026.
Ben Reitzes (Ben Reitzes), managing director of Melius Research, said that Nvidia has a lot of cash in their hands, so “at some point they will have to buy back more shares.”
Rosenblatt Securities continues to set the highest Wall Street price target for Nvidia shares, raising it from the previous target price of $200 to $220. This means the stock could be up 50% from Thursday's closing price.
According to media statistics, after Nvidia announced its earnings report, Wall Street's average price target for Nvidia jumped from $150 per share before release to around $168 per share.
