HomeFinancial MarketsNvidia Stock Continues to Climb As Q2 Earnings Are Expected to Outperform...

Nvidia Stock Continues to Climb As Q2 Earnings Are Expected to Outperform Estimates

Chipmaker Nvidia is one week away from sharing its second-quarter earnings, but the consensus is that the numbers will outperform estimates by Wall Street analysts. This caused the company’s shares to climb more than 8%.

Nvidia is expected to benefit from increased demands for their chips that were caused by the Artificial Intelligence race. Both high-profile companies and smaller developers are relying on Nvidia chips to power their AI platforms.

In the first quarter, Nvidia blew past analysts’ expectations, reporting $7.2 billion in revenue compared to an estimated $6.5 billion. It also raised its forecast for Q2, saying it expects revenue of $11 billion, while analysts predicted $7.3 billion.

The same outcome is expected in Q2, considering that the company was able to increase its margins thanks to the high demand.

“I anticipate that the results are going to look really outstanding because demand is so high, and that means Nvidia is able to command even higher margins than it would otherwise,” Forrester analyst Glenn O’Donnell told Yahoo Finance.

Most analysts raised the target price for Nvidia’s stock in recent days. UBS analysts have now set the target price from $475 to $540, while Baird’s analysts went even further, increasing the target price to $570 compared to the previous $475.

Nvidia’s stock opened at $404.98 per share on Monday morning but has climbed all the way to $439.04 through Wednesday. The company’s shares are 206.70% up year-to-date.

Home Sales Plummeted in August According to Pending Data

Pending home sales for August were down 7.1% from the previous month, data from the National Association of Realtors revealed. This far outpaces the...

Stocks Fall After the Release of GDP Data

U.S. stocks declined on Thursday as investors digested the latest round of GDP data. Estimates on Thursday showed that the U.S. economy's GDP for...

Hyundai and Kia Recall Over 3 Million Vehicles Due to Fire Risk

Hyundai and Kia are in the process of recalling over 3.4 million vehicles in the United States due to a fire risk. Both automakers...