Nvidia Corporation (NASDAQ:NVDA) is set to report second-quarter earnings after the bell on Thursday, and that’s where all the attention has been. Will Nvidia top expectations again? Or are results set to disappoint? Will NVDA stock explode higher? Or will it give up all its recent gains?
The truth is that the quarter was probably pretty good. Competitor Advanced Micro Devices, Inc. (NASDAQ:AMD) reported a blowout quarter, and AMD didn’t release any new high-end, deep-learning or automotive GPUs in the quarter.
But NVDA did. That likely means Nvidia had a markedly better quarter than AMD. The interpretation here is that NVDA’s results will likely be stellar.
And while that is important for keeping the stock afloat in the near-term, it really doesn’t affect the long-term investment thesis. NVDA stock is exposed to multiple secular growth markets that have very, very long runways. There will be near-term noise in those markets, but demand overall will remain robust into the foreseeable future.
As such, regardless of quarterly earnings noise, NVDA is a stock investors should own in today’s increasingly AI-immersed world.
The Street Loves Nvidia
I am not alone in my bullishness on NVDA stock into the remainder of the year. In fact, analysts have come out in growing numbers over the past month or so to tout NVDA stock’s growth potential.
At the end of June, Mizuho Securities maintained their “buy” rating on NVDA stock while pushing the price target to $170 (from $145 previously).
Mizuho analyst Vijay Rakesh sees pricing in the GPU market stabilizing. He likes NVDA’s growth potential in the gaming market in 2H17, as he believes estimates are conservative. Rakesh thinks the growth drivers in the back half of the year will be an uptick in cryptocurrency mining and new auto wins.