Why Nvidia Stock Can 'lead the Charge' This Earnings Season

Dow Jones07-21 22:50

Nvidia stock was rising early Tuesday amid a broader semiconductor-stock rally. The artificial-intelligence chip company could regain its luster this earnings season, according to analysts at Susquehanna.

Nvidia shares were up 1% at $205.31 in morning trading. The PHLX Semiconductor Index was rising 4.3%.

Although Nvidia is having trouble keeping investors' attention in its graphics-processing units amid the range of AI hardware on the market, Susquehanna's Christopher Rolland is positive about the potential for it to retake the limelight.

"AI continues to be the major bright spot across our coverage. Nvidia continues to lead the charge here, guiding its Blackwell/Rubin revenue to reach >$1 trillion through the end of 2027," Rolland wrote in a research note on Tuesday.

Rolland raised his estimates for Nvidia's 2027 earnings per share to $8.97 from $8.94. He has a Buy rating and $275 target price on the stock, based on a price-to-earnings multiple of 31 times his forecast for its adjusted 2026 earnings.

At the moment, Nvidia trades at a forward price-to-earnings multiple of 19.1 times according to FactSet. That compares with a 20.1 times multiple for the S&P 500 as a whole.

Nvidia was a recent Barron's stock pick when it was trading around $226.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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July 21, 2026 10:50 ET (14:50 GMT)

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