Chipmaker Could Give ‘One other Drop the Mic Performance,’ Wedbush Analysts Say

Key Takeaways

• Expectations for Nvidia’s earnings release Wednesday are on the rise, in what could make it harder for the AI chipmaker to impress investors.

• Consensus estimates for Nvidia’s second-quarter revenue and earnings climbed by lots of of thousands and thousands of dollars inside the last 48 hours alone.

• Nvidia shares gained greater than 4% Friday and have risen about 160% because the start of the 12 months.

Expectations for Nvidia’s (NVDA) earnings release Wednesday are on the rise, in what could make it harder for the artificial intelligence (AI) darling to impress investors.

Consensus estimates for Nvidia’s second-quarter revenue rose by $170 million to $28.84 billion within the last 48 hours alone, in line with estimates compiled by Visible Alpha, while net income projections rose $120 million to $14.95 billion.

Whisper numbers may very well be even higher, with some analysts having long voiced concerns about investors’ expectations exceeding Wall Street projections.

Expecting One other ‘Drop the Mic Performance’

Wedbush analysts said Thursday they expect “one other drop the mic performance from Nvidia,” citing signs of “massive enterprise AI demand” and spending by cloud giants comparable to Amazon (AMZN) and Alphabet’s Google (GOOGL), all trends that will profit the chipmaker.

They’re not alone, as analysts from Raymond James, KeyBanc, and elsewhere recently said they expect a robust quarter from the chipmaker as well, despite concerns a couple of reported delay in Nvidia’s Blackwell AI chip.

Over 95% of analysts tracked by Visible Alpha have a “buy” rating for the stock, with a consensus price goal of $144.83, 12% above Friday’s closing price.

Nvidia shares gained 4.6% Friday to shut at $129.37. The stock has gained about 160% since starting of the 12 months.

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