Nvidia Analyst Predicts ‘Jaw Dropper’ Q3 Earnings—Others on Wall Street Are Not So Sure
Nvidia Corp. is set to report its third-quarter earnings on November 17, and analysts are divided on what to expect.
Nvidia is a leading designer of graphics processing units (GPUs), which are used in a variety of applications, including gaming, artificial intelligence, and data science.
In a recent note to clients, Susquehanna Financial Group analyst Christopher Rolland predicted that Nvidia will report “jaw-dropping” earnings for the third quarter.
Rolland cited strong demand for Nvidia’s GPUs from gamers, data centers, and other customers.
However, other analysts are not so sure.
BMO Capital Markets analyst Ambrish Srivastava said in a note to clients that he is “cautiously optimistic” about Nvidia’s third-quarter earnings.
Srivastava said that while he believes Nvidia will continue to benefit from strong demand for its GPUs, he is concerned about the impact of the global chip shortage on the company’s margins.
Here is a summary of the earnings estimates from analysts covering Nvidia:
- Susquehanna Financial Group: $3.40 per share
- BMO Capital Markets: $3.10 per share
- Wells Fargo: $3.05 per share
- Jefferies: $2.95 per share
Nvidia’s stock price has been on a tear in recent months, rising more than 50% year-to-date.
However, the stock has pulled back slightly in recent weeks amid concerns about the global chip shortage and the impact of the COVID-19 pandemic on demand for GPUs.
It remains to be seen whether Nvidia will be able to deliver “jaw-dropping” earnings for the third quarter.
However, the company’s strong track record of innovation and its leadership position in the GPU market suggest that it is well-positioned to continue to grow in the years to come.
