Investors may want to consider using the post-earnings weakness in Nvidia to scoop up shares, according to some Wall Street analysts. Shares of Nvidia slumped about 3% in the premarket — after falling by more than 8% at one point in after-hours trading — even after the chipmaker topped Wall Street's quarterly estimates . Nvidia also said it plans to ship "several billion dollars" worth of Blackwell revenue in the fourth quarter, alleviating some recent concerns of production delays.
The company, however, said gross margins declined from the previous quarter. Nvidia also issued a stronger-than-expected forecast, but it was below the so-called "whisper" number. Some Wall Street analysts attributed these disappointments to the decline.
That wasn't enough to deter analysts from recommending buying the Nvidia dip. "We are buyers of NVDA on the pullback following the Q2 print," wrote Piper Sandler's Harsh Kumar. "In our opinion, fundamentals remain intact; however, the stock is off AH on concerns of [gross margin] compression paired with guidance not being large enough relative to prior beats.
" NVDA 1D mountain Shares fall after earnings report UBS analyst Timothy Arcuri also recommended buying the weakness, noting that key indicators for the company remain bullish. Those include growth in purchase and supply commitments. Bernstein's Stacy Rasgon, meanwhile, lifted his price target to $155 from $130, saying the "narrative remains solid.
" The new target reflects 23% upside from Wednesday's close. Many analysts also reiterated their confidence in the stock's long-term AI potential and the ramp of its Blackwell chips. Morgan Stanley's Joseph Moore boosted his price target to $150 from $144 a share, representing 19% upside from Wednesday's close.
"We think that Blackwell will be an accelerant to growth next year, and we expect Nvidia to gain share slightly in processors, vs. custom [application-specific integrated circuits] or alternative merchant solutions," he said. Bank of America's Vivek Arya told investors to "ignore the quarterly noise," adding that the stock offers "unique growth at very reasonable valuation.
" NVDA YTD mountain Shares this year Elsewhere, JPMorgan's Harlan Sur lifted his target by 35% to $155 a share, citing strong AI demand and the impending Blackwell ramp. "Bottom line, the team continues to maintain a 1- 2 step lead ahead of competitors with its silicon/hardware/software platforms, and a strong ecosystem ..
. and the team is further distancing itself with its aggressive cadence of new product launches and more product segmentation over time," he wrote. Nvidia has been the market stalwart once again in 2024, as investor enthusiasm around AI and its impact on corporate profits hasn't relented.
Year to date, the stock is up a whopping 153.6%..
