Nvidia's Stock Dips, But Wall Street Urges Investors to Buy Now
Despite a recent decline in Nvidia's stock price, leading Wall Street analysts recommend purchasing shares, highlighting strong demand for AI-related products and optimistic future growth.
Key Insights
- Investors may be cautious due to Nvidia's slowing growth, but analysts continue to endorse buying the stock.
- JPMorgan increased its price target from $115 to $155, citing robust demand for Hopper chips and progress with the Blackwell GPU.
- Shares experienced a decline during Thursday's morning trading session.
Although Nvidia's latest earnings report left some investors unimpressed, Wall Street remains confident in the company's long-term potential and encourages buying the dip.
Following Nvidia's recent earnings announcement, several analysts emphasized the company's strong quarterly performance despite signs of decelerating growth that caused shares to drop roughly 3% in early trading.
Nvidia reported exceptional second-quarter results, with revenue and net income more than doubling year-over-year and surpassing analyst expectations. However, investor focus on slowing growth tempered the stock's immediate reaction.
JPMorgan Raises Price Target to $155 Amid Positive GPU Developments
JPMorgan analysts boosted their price target to $155 from $115 and reiterated an overweight rating, highlighting strong sales of Nvidia's current Hopper chips and confirming that the anticipated Blackwell GPU production is back on schedule.
"Although Blackwell shipments have been delayed by approximately two months as anticipated, this is offset by increased Hopper chip shipments driven by high AI demand, maintaining our revenue outlook for 2024 and 2025," JPMorgan stated.
Wedbush described the earnings as "exceptional," noting that every dollar invested in Nvidia's GPUs generates an $8 to $10 impact across the technology sector.
"Demand for AI GPUs far exceeds supply, making these results a highly positive signal for the broader tech industry, rather than a reason for concern," Wedbush commented, maintaining an outperform rating.
Jefferies acknowledged the earnings beat was below expectations but emphasized that the Blackwell delay is now behind Nvidia, and Hopper demand remains strong. The firm maintains a buy rating on the stock.
HSBC continues to recommend buying Nvidia with a $145 price target, while Bank of America increased its target to $165 from $150.
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