With Nvidia (NASDAQ: NVDA) set to announce its Q3 2024 earnings on November 20, an artificial intelligence (AI) tool has shared insights on how the company’s share price might respond.
After hitting a high of almost $150, Nvidia’s stock has experienced some volatility, and the earnings report remains central to determining its trajectory.
At the close of the last trading session, NVDA was valued at $146.27, ending the day down 1.36%. Heading into the opening session on November 14, NVDA showed minor strength up almost 0.7%.
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As it stands, Q3 could be the quarter with the highest expectations the company has ever faced, as it will showcase Nvidia’s position in the AI space. Investors will look at the company’s full-year forecast alongside positive sentiments surrounding the next-generation Blackwell chips.
For the quarter ending September 2024, Nvidia expects revenue of approximately $32.5 billion, alongside gross profit margins of about 75%. Analysts have set an earnings per share estimate of $0.74 and revenue of $32.94 billion.
AI predicts NVDA share price after Q3 earnings
With this in mind, attention remains on whether the chipmaker will meet these targets and the potential implications for the share price, as a positive outcome would likely push NVDA past the $150 mark.
To this end, Finbold consulted OpenAI’s ChatGPT-4 to gauge NVDA’s share price after the earnings release.
According to ChatGPT, if Nvidia surpasses the earnings estimate, the stock price will likely exceed the $150 mark and target $160. However, the AI tool foresees NVDA’s stock price dropping from $131 to $139 if the company misses the earnings estimate.
Besides the impact of the Q3 report, ChatGPT-4o pointed out that equity will rely on general market sentiment. Recently, NVDA has benefited from the optimism generated by Donald Trump’s election, which is widely considered bullish for stocks.
Wall Street’s outlook on NVDA share price
Wall Street analysts have also shared their outlook on the equity ahead of earnings. For instance, Mizuho raised its share price target from $140 to $165, expressing optimism about its AI and data center market dominance.
Morgan Stanley’s Joseph Moore raised his target from $150 to $160, citing the impact of the upcoming Blackwell chips, which CEO Jensen Huang noted are experiencing intense demand.
However, Moore warned that the company might be impacted by supply chain constraints, which could hinder the issuance of annual solid guidance.
“We are back to fully supply constrained on new products, which could limit upside on current quarter and outlook,” said Moore.
Piper Sandler analyst Harsh Kumar echoed the same supply chain concerns, nonetheless expecting NVDA to rise to $175.
All in all, Nvidia’s Q3 earnings report will be pivotal in shaping its stock trajectory, driven by its AI expansion and the highly anticipated Blackwell chips. However, supply chain constraints could temper growth prospects, leaving investors to weigh strong earnings against broader market conditions and production challenges.
Featured image via Shutterstock
