Chipmaker Nvidia’s (NVDA) Nov. 19 financial results are likely to be an artificial intelligence (AI) “validation moment,” according to Wedbush technology analyst Dan Ives.
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Ives, who is known on Wall Street as a technology bull, says he expects Nvidia to deliver strong financial results for what was this year’s third quarter and allay some investor concerns about the trade in artificial intelligence.
On social media, Ives described Nvidia as “a foundational piece of this AI Revolution,” predicting the company will “handily exceed Street estimates” that are calling for earnings per share (EPS) of $1.23 and revenue of $54.83 billion. Ives said Nvidia’s Q3 print is likely to be reliably strong despite some hand-wringing on Wall Street.
Underestimating Nvidia
Ives, who is closely followed by retail investors, said Wall Street continues to underestimate Nvidia’s future performance, projecting that growth for the microchip designer will come from enterprise, government, and global adoption of AI products over the next 12 to 18 months.
The analyst added that the upcoming earnings report represents a potential “positive catalyst for tech stocks into year-end.” Ives estimates that for every dollar spent on Nvidia products, there is an $8 to $10 multiplier effect across the broader technology ecosystem. “We believe Nvidia’s earnings will be another major validation moment for the AI Revolution and be a positive catalyst for tech stocks,” wrote Ives.
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 39 Wall Street analysts. That rating is based on 37 Buy, one Hold, and one Sell recommendations issued in the past three months. The average NVDA price target of $242.00 implies 30.88% upside from current levels.
