Nvidia Corp.
The AI computing giant credited its soaring revenue to robust data center performance, although its gross margin showed a slight contraction from the previous quarter.
Nvidia also issued an above-consensus revenue forecast for the third quarter and announced a massive $50-billion stock repurchase authorization.
Despite these strong results, Nvidia's shares fell 3.6% in after-hours trading. Here's how top Wall Street analysts are reacting to Nvidia's latest performance:
JPMorgan: Analyst Harlan Sur rates Nvidia stock as Overweight with a price target of $155, up from $115.
"We expect solid demand in PC gaming to be a strong revenue driver for the company," Sur wrote. He remains positive about Nvidia's growth prospects in data centers and automotive segments, expecting continued strength in these areas.
Goldman Sachs: Analyst Toshiya Hari has a Neutral rating on Nvidia stock with a price target of $135.
Hari acknowledged Nvidia's efforts to address Blackwell's challenges, stating, "Management confirmed that they had executed a re-design without any compromise on performance." He highlights Nvidia's strong data center revenue but notes a need to adjust margin expectations.
Cantor Fitzgerald: Analyst C.J. Muse maintains an Overweight rating on Nvidia stock with a price target of $175.
"But AI is an existential threat to the hyperscalers/ consumer internet players, and the inherent value of pushing the envelope on next-generation [large language models] is too significant to slow down, nevermind the first to truly harness AGI," Muse says. "So we do not see any change to the AI story underpinning NVDA, and think tomorrow's potential pullback is simply another buying opportunity."
Stifel: Analyst Ruben Roy rates Nvidia stock as Buy with a price target of $165.
Roy emphasizes Nvidia's data center performance, saying, "NVDA remains the primary beneficiary" of ongoing modernization in compute stacks. He's optimistic about the Blackwell architecture despite some short-term margin pressures.
Benchmark: Analyst Cody Acree has a Buy rating on Nvidia stock with a price target of $170.
Acree views the recent drop in Nvidia's share price as a chance to buy, stating, "NVDA's negative share reaction is as much driven by a complacent & antsy investor base." He remains confident in Nvidia's long-term prospects despite the current market volatility.
D.A. Davidson: Analyst Gil Luria rates Nvidia stock as Neutral with a price target of $90.
Luria acknowledges Nvidia's strong revenue growth but remains cautious, noting, "strong revenue growth," while expressing concerns about operating leverage and future sequential declines.
Piper Sandler: Analyst Harsh V. Kumar maintains an Overweight rating on Nvidia stock with a price target of $140.
Kumar views the recent pullback as an opportunity, saying, "we are buyers of NVDA on the pullback." He believes that Nvidia's fundamental strength remains intact despite short-term margin pressures.
Truist Securities: Analyst William Stein rates Nvidia stock as Buy with a price target of $148, up from $145.
Stein encourages investors to "look through the fog" of short-term challenges, highlighting Nvidia's enduring AI leadership and continued strong growth expectations.
Overall, while Nvidia's Q2 results exceeded forecasts, the stock's post-earnings dip has sparked varied reactions among analysts, with many seeing it as a chance to buy into Nvidia's promising future in AI and data centers.
