As Nvidia‘s (NASDAQ: NVDA) Q2 earnings report on August 28 is fast approaching, analysts from Bank of America have labeled NVDA stock as a “table-pounding buy.”’
Analyst Alexander Perry noted on August 24 that Nvidia’s share price rose 964% from October 2022 to July 2024, still trading within its historical valuation range.
He added that it “may have more room to run, but too narrow of a focus on Nvidia, or even semis more broadly, will miss the bigger picture.”
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According to Perry, any potential market pullback is a chance to buy NVDA shares at a discounted price.
NVDA stock price chart
The latest trading session on August 23 saw NVDA shares trade at $129.37 after adding 4.55%, continuing a positive trend from the past five days, when they added 4.10%.
However, the real resilience of NVDA stock was showcased in the previous month.
During the broader stock market dip, it experienced a nearly 20% drop in value but managed to recover those losses in just two weeks, from August 7 to August 23, recording a 30% gain.
What does Wall Street expect from Nvidia’s Q2 earnings?
Nvidia’s dominance over the semiconductor sector, with analysts from Wall Street expecting some strong numbers to support this claim.
In particular, experts from the Financial District predict earnings per share (EPS) of $0.64, which would represent a 134% year-over-year increase from the same period last year.
Similarly, revenue of $28.71 billion is expected, a 113% increase from the same quarter in 2023.
Melius analysts see Nvidia stock at $160 soon
Melius analyst Ben Reitzes expressed confidence in Nvidia’s potential to reach a $160 share target soon.
Although initial concerns emerged about the new Blackwell chips due to potential delays from overheating and design issues, demand for these systems is expected to remain strong by April 2025.
Training for large language models (LLMs) among major customers continues robustly despite the slower-than-expected deployment of related applications like OpenAI‘s ChatGPT-4o and Microsoft‘s (NASDAQ: MSFT) Copilot.
Nvidia’s H100 and H200 sales benefit from increased training efforts by companies like Meta (NASDAQ: META) and OpenAI.
The report also discusses the possibility of Nvidia exceeding expectations, with a “Triple Lindy” scenario involving surpassing F2Q25 estimates by $2 billion and continued growth into F4Q25.
Reitzes says, “However, “whispers” are much more muted in this print. The Triple Lindy would beat F2Q25 by $2 billion, guide up F3Q25 by $2 billion quarter-over-quarter, and say enough to imply that F4Q25 grows quarter-over-quarter by approximately another $2 billion. Nvidia did this last quarter with one of the best conference calls we’ve ever heard.”
While this scenario is possible but unnecessary for long-term success, according to Melius analyst, even with slight shortfalls, Nvidia’s EPS could approach $5 within 18 months, pushing the stock toward the $160 target.
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