Daily Scoop🍨: Nvidia (NVDA) To Soar To $178 (So Says An Analyst)
Shares of Nvidia (NVDA 1.63%) are close to new highs heading into the next earnings report on Nov. 20. Earnings season can lead to wild swings in stock prices, but one analyst believes Nvidia shares are worth buying now.
Redburn Atlantic analyst Timm Schulze-Melander initiated coverage of the stock this week with a "buy" rating. The analyst set the price target at $178, implying upside of 21% over the current share price of $147 at the time of writing.
Despite the analyst's call, here's why investors should wait until after the upcoming report before deciding to buy Nvidia shares.
Nvidia must meet high growth expectations
Nvidia is showing signs that it is still in the early phases of meeting demand for data center hardware to support artificial intelligence (AI) workloads. While its second-quarter revenue growth decelerated from the previous quarter, Nvidia still posted a year-over-year increase of 122% in total revenue, which is extraordinary for a leading semiconductor business.
Analysts are usually more accurate in modeling a company's near-term financial performance than predicting stock price movements. The consensus analyst estimate has Nvidia's revenue growing 125% this year before increasing 44% next year, according to Yahoo Finance. The high demand for Nvidia's data center chips is expected to keep its profit margin firm, so analysts are also expecting the company to grow earnings 44% next year to reach $4.12 per share.
Nvidia (NVDA) is like the Swan of the Stock Market Now. Everyone is looking at it, it gets more beautiful and beautiful but the lake gets murkier and murkier with other bad stocks that are tumbling down.
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