Investing.com– Analysts maintained a bullish view on NVIDIA Company (NASDAQ:) even after some projections from the chipmaker missed expectations, with sustained demand from synthetic intelligence and a sturdy line of merchandise anticipated to underpin earnings.
Nvidia’s shares sank as a lot as 8.5% in aftermarket commerce, even because the agency beat expectations with its revenue for the Might-July quarter. The agency additionally introduced a bumped $50 billion buyback.
However its income steering for the present quarter- of round $32.5 billion- missed some estimates, as did its gross margin outlook. The forecasts additionally offered a slowing tempo of development from prior quarters.
Nvidia additionally confirmed that it was going through some difficulties with its Blackwell line of superior AI chips, though they had been nonetheless set for launch by the fourth quarter.
However regardless of the headwinds, analysts maintained a largely bullish stance on the inventory, with some brokerages even mountain climbing their value goal on the inventory.
Blackwell delay “a lot ado about nothing,” PT hiked- Truist
Truist Securities stated that modifications to Nvidia’s Blackwell line offered a negligible impression on the agency, and that its quarterly earnings reiterated the agency’s lead in AI.
The brokerage famous persistent, outsized development in Nvidia’s key datacenter unit, and likewise flagged a “flurry of recent merchandise” that mirrored broadening power.
Truist hiked its PT on the inventory to $148 from $145, and maintained a Purchase ranking on Nvidia, recommending that traders “look via the fog.” The brokerage additionally known as the selldown in Nvidia shares unwarranted.
NVDA product story again on monitor, Blackwell delays within the rearview- Jefferies
Jefferies stated that expectations for Nvidia’s earnings had risen sharply going into the outcomes, and that demand for Nvidia’s present line of top-end AI chips, Hopper, remained sturdy.
Jefferies famous that the agency’s current-quarter steering was good, however not ok.
However the brokerage stated that fears of great delays within the hotly anticipated Blackwell line had been now within the rearview, and that the road was nonetheless anticipated so as to add to already sturdy income from the Hopper line.
Jefferies maintained its Purchase ranking on the inventory with a PT of $150, implying a 19% upside from present ranges.
Bullish view underpinned by Blackwell expectations- Wolfe Analysis
Wolfe Analysis stated that whereas Nvidia’s steering did mirror a slowing tempo of development, the brokerage’s bullish view on the inventory was underpinned by expectations of sturdy income development on the eventual launch of the Blackwell line.
However the brokerage did observe {that a} “profitable and well timed” launch of the brand new line was key to driving Nvidia’s future earnings.
Wolfe maintained an Outperform ranking on Nvidia, with a PT of $150.