JPMorgan Just Raised Its Price Target on Nvidia (NVDA) Stock


  • Semiconductor giant Nvidia (NVDA) soared on Thursday following another blockbuster earnings.
  • JPMorgan Chase was one of the several firms that boosted its price targets on NVDA stock.
  • Fears of a demand cycle lumpiness faded following the encouraging report.
NVDA stock - JPMorgan Just Raised Its Price Target on Nvidia (NVDA) Stock

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Concerns that semiconductor juggernaut Nvidia (NASDAQ:NVDA) was getting overstretched quickly faded following its much-anticipated first-quarter earnings report. Subsequently, several analysts raised their price targets on NVDA stock. In particular, the technology giant assuaged fears that enterprises would sit on the sidelines while waiting for Nvidia’s latest chips.

On Wednesday, after the closing bell, the company disclosed that it posted adjusted earnings per share of $6.12, beating the consensus target of $5.59. It also beat on the top line, generating sales of $26.04 billion against analysts’ view of $24.65 billion. Further, management stated that it anticipates revenue to reach $28 billion in Q2. In contrast, covering experts were looking for $26.61 billion.

Over the past year, a myriad of tech enterprises, from Microsoft (NASDAQ:MSFT) to Amazon (NASDAQ:AMZN), ordered billions of dollars worth of Nvidia’s graphics processing units (GPUs). These advanced chips help power artificial intelligence (AI) based protocols and platforms.

In response to the blistering print, JPMorgan Chase represented one of the many investment firms that raised their price target on NVDA stock. Specifically, JPMorgan’s Harlan Sur lifted the per-share forecast to $1,150 from $850, maintaining an “overweight” rating.

In a note to clients, Sur was impressed with Nvidia’s “increasing breadth of the customer demand, with enterprise/enterprise verticals driving strong Q/Q growth in addition to consumer internet hyperscalers.”

NVDA Stock Jumps After Addressing “Air Pocket” Concerns

Prior to the Q1 earnings disclosure, concerns circulated that Nvidia could post disappointing results. Earlier in the week, the Financial Times reported that Amazon Web Services (AWS) stopped ordering Nvidia’s most advanced chip called the “Grace Hopper.” Instead, the business unit would allegedly wait for Nvidia’s upcoming Blackwell processor.

However, AWS clarified the record, stating that the transition applied only to a sole supercomputer project that Amazon and Nvidia were jointly developing. At the time, the clarification didn’t quite address concerns about NVDA stock as it faded heading into the earnings disclosure. In the run-up to the Q1 print, analysts worried about an “air pocket” forming within the product cycle.

Essentially, enterprises might hold off on Hopper orders and wait for the Blackwell processor. Doing so may lead to demand lumpiness. In addition, a surge in Blackwell demand could cause supply chain inefficiencies, translating to missed opportunities.

However, Nvidia eased such anxieties with its robust financials, which signaled ongoing momentum. Bernstein analyst Stacy Rasgon boosted the price target of NVDA stock to $1,300, stating that the “narrative is clearly nowhere near its end, or likely nowhere near its peak.”

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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