Nvidia Stock Rises After Blowout Earnings as Goldman Sachs Boosts Price Target
Nvidia, the world's leading chipmaker, reported strong Q2 results on Wednesday, surpassing analyst estimates and sending its stock price surging. The company's revenue grew by 106% year-over-year to $96.22 billion, beating expectations of $92.17 billion. Adjusted earnings per share also exceeded forecasts at $2.22.
The data center segment saw significant growth, more than doubling to $89 billion. Nvidia CFO Colette Kress announced that the company expects 70% revenue growth in fiscal 2028, exceeding analyst projections of 44%. The current quarter's revenue is anticipated to reach around $108 billion.
Goldman Sachs analyst James Schneider praised the outlook, stating that it provides a clearer path for Nvidia stock to 'outperform the market over the coming months.' He attributed this optimism to the company's work with data center and supply-chain partners to meet demand, which could support revenue growth of more than 100%. Schneider also pointed out that Nvidia's expected gross margin in fiscal 2028 is 72-73%, easing concerns about rising input costs.
Schneider maintained his Buy rating on Nvidia stock and increased his price target from $285 to $300, indicating a potential upside of 43%.