Nvidia (NASDAQ:NVDA) stock is grabbing all the attention today after the AI chip giant posted earnings that came in ahead of expectations. Investors have been on edge lately, questioning whether the AI boom that fueled Nvidia’s rise was starting to cool off. But the numbers told a different story, with the stock jumping ~5% in after-hours trading.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Nvidia posted revenue of $57 billion, topping the Street’s $55 billion forecast, while earnings per share came in $1.30, extending the company’s streak of clean beats. The key metric – data-center revenue – pulled in $51.2 billion for the quarter, up about 66% year-over-year and beating expectations by $2 billion, signaling that the early stages of the AI-infrastructure build-out are still in full swing despite the skeptics circling. More importantly, the company projected about $65 billion for January-quarter revenue, well above the $61.7 billion analysts had penciled in.
Overall, Nvidia rolled out a blockbuster print, and effectively said: Relax — the AI train is still moving.
Wedbush analyst Daniel Ives wasted no time adding his signature enthusiasm to the mix. To Ives, this quarter is nothing less than a major validation point for the AI revolution. Ives argues that fears of an AI bubble are “way overstated,” saying the Street keeps underestimating how strong Nvidia’s trajectory actually is.
One of Ives’ key points is his estimate that every dollar spent on Nvidia’s AI hardware drives an additional $8 to $10 across the tech ecosystem. In other words, Nvidia isn’t just selling chips; it’s powering an entire economic engine of hyperscalers, cloud players, software vendors, and everything in between. That multiplier, in his view, marks Nvidia as the defining company of this AI era.
Ives also highlighted the strong tone coming from Nvidia’s conference call, especially around Blackwell demand and the rollout of Rubin, calling the guidance “a huge print” that should reignite bullish sentiment across tech as we head toward year-end. With hyperscale giants like Microsoft, Google, Amazon, and Oracle still racing to secure as much compute as possible, Ives believes we’re only in the top of the third inning of what the AI story will eventually become.
Overall, NVDA has almost unanimous support among Ives’ colleagues. The 1 Hold and 1 Sell are dwarfed by 37 Buys, resulting in a Strong Buy consensus rating. With an average price target of $243.09, analysts expect the shares to rise by about 30% over the coming months. (See NVDA stock forecast)
For investors looking for stocks trading at compelling valuations, TipRanks’ Best Stocks to Buy tool is a great place to start, bringing together all of the platform’s top equity insights in one spot.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.