Wedbush Securities analysts expect NVIDIA Corp (NVDA) to exceed current Street as well as their own targets and provide a “robust forward outlook” when the company reports its second-quarter 2024 financial results after the market close on August 23.
In a note to clients, though, Wedbush analysts stated they don't believe NVDA results and guidance need to hit the high end of expectations.
“With demand for AI training having lifted substantially in the past quarter and with no other silicon supplier now capable of providing part volumes within an order of magnitude of NVDA's output, we believe any unfilled demand will just be pushed into forward quarters fueling future sales and earnings per share," the analysts wrote.
They added that they remain extremely bullish on NVDA's intermediate term future in light of positive shifts in training demand.
And, given NVDA’s surprisingly optimistic guidance in May for 2Q, the analysts at Wedbush believe that even if its 3Q guidance disappoints on the back of heightened expectations the “investment community will correctly look through current quarter expectations towards the potential for stronger results in the out quarters”.
They reiterated their ‘Outperform’ rating and target price of $490 per share on NVDA stock.
Shares of NVIDIA slipped 2.2% to $423.83 in early Friday trading but have gained 196% year to date.
Contact Sean at sean@proactiveinvestors.com