Aug 28 - Nvidia (NASDAQ:NVDA) slipped nearly 2% on early Thursday trading, even though the chipmaker's fiscal second-quarter earnings and outlook topped Wall Street estimates. The company also announced a massive $60 billion share repurchase plan, underscoring confidence in long-term demand for its AI-driven products.
For the quarter ending July 27, Nvidia reported adjusted earnings of $1.05 per share on $46.74 billion in revenue, ahead of analyst expectations of $1.01 per share and $46.13 billion in sales.
Data center revenue surged 56% year-over-year to $41.1 billion, though it came in just under forecasts, which is why the stock dipped. Gaming revenue reached $4.3 billion, climbing 49% from last year, while automotive and professional visualization segments also saw strong growth.
CEO Jensen Huang highlighted accelerating demand for Nvidia's Blackwell AI platform, calling it a generational leap in computing power. However, the company said sales to China remain at zero, creating uncertainty for future quarters.
Looking ahead, Nvidia guided for $54 billion in revenue for fiscal Q3, slightly above consensus. While guidance points to continued growth, the absence of China-related sales and concerns over sustainability of AI-driven demand kept investors cautious.
Based on the one year price targets offered by 52 analysts, the average target price for NVIDIA Corp is $200.02 with a high estimate of $389.73 and a low estimate of $100.00. The average target implies a upside of +10.14% from the current price of $181.60.
Based on GuruFocus estimates, the estimated GF Value for NVIDIA Corp in one year is $294.34, suggesting a upside of +62.08% from the current price of $181.60. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.