Analysts are reconsidering Nvidia stock price targets, focusing on third-quarter results

Nvidia shares fell slightly in early Monday trading but are still on track to add more than $350 billion this month, as two top Wall Street analysts weighed in ahead of the AI ​​company’s earnings report. The chip maker will issue new third-quarter price target updates next week.

Nvidia (NVDA) which overtook Apple last week (AAPL) As the most valuable company in the world based on market capitalization, the company also replaced the weak chip manufacturer Intel (INTC) in the Dow Jones Industrial Average as its impressive rise exceeded 205% in 2024.

The group is due to submit a report on Wednesday, November 20th. Analysts are expecting a massive 82% year-over-year increase in revenue to just under $33 billion, driven in part by continued demand for its legacy Hopper chips and gains from its newly released line of Blackwell processors.

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Nvidia told investors in late August that third-quarter revenue would be about $32.5 billion, more than double the same period last year. However, the company faced some delays in the delivery of its new Blackwell processor line due to design changes and supply chain issues.

Nvidia’s influence on the market for so-called AI accelerators, which power the large data sets and language models used by companies like Google parent Alphabet (GOOGL) Microsoft (MSFT) Amazon (AMZN) and metaplatforms (META) This likely means it will continue to help investors see impressive revenue growth in the coming year.

Nvidia CEO Jensen Huang has described demand for the AI ​​chip maker’s new Blackwell processor range as “insane”.

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UBS analysts expect the four largest hyperscalers, which all reported third-quarter earnings this week and form the backbone of the global AI investment race, to spend $267 billion on capital projects related to the new technologies next year will be spent, which corresponds to an increase of 33.5% for the annual forecast.

Even Tesla (TSLA) The company, which is pursuing CEO Elon Musk’s bold ambitions for autonomous robotaxis and other self-driving electric vehicles, expects to spend about $11 billion this year, “primarily driven by investments in AI computing.”

“We expect the total addressable AI accelerator market to grow by approximately $70 billion in 2025, with Nvidia well-positioned to capture most of this increase and only a small portion to competitors of merchant chips,” Harsh Kumar, an analyst at Piper Sandler, said in a note published on Monday.

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Kumar, who raised his price target on Nvidia by $35 to $175 a share, said supply constraints would likely lead to only modest sales declines in the October quarter and the three months to January, but he expected a stronger AI through 2025 -supported growth.

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