Nvidia’s earnings report is just a few days away, and Wall Street analysts are showing more confidence in the company’s future. Several analysts believe the stock could see strong gains soon.
Nvidia shares went up a little in premarket trading. So far this year, the stock has gained 17% through Wednesday’s close, but that is much less than the 66% rise in the PHLX Semiconductor Index during the same time.
The upcoming earnings report next Wednesday could help close that gap. Both Stifel and Oppenheimer expect Nvidia to do better than expected for the July quarter and to raise its outlook for the current quarter.
Stifel kept its positive price target for Nvidia this week, expecting the company to beat the consensus forecast of $2.09 per share in adjusted earnings and $91.96 billion in revenue. The firm values Nvidia at 22 times its expected earnings for fiscal 2028. Stifel said recent earnings reports have shown strong demand for AI, with cloud service providers increasing their spending. The firm also mentioned that issues like memory costs and competition in inference are more likely to affect gross margins than overall demand, and thinks these concerns are already partly included in the current stock price.
Oppenheimer also kept its positive price target on Wednesday. The firm pointed out that Nvidia trades at only 16 times its expected 2027 earnings, while other AI chip companies average more than 30 times. Oppenheimer said Nvidia’s strong profit margins and growth from AI make it the clear leader in AI infrastructure. The firm also highlighted Nvidia’s yearly product upgrades as a reason it stays ahead of competitors, and it remains positive about the stock for the long term.
