Nvidia’s Stock Reacts to Earnings: A Dip Amidst Optimism
Nvidia (NVDA) shares saw a dip on Thursday, giving up early gains despite the chipmaker reporting earnings that surpassed market estimates. The stock’s performance suggests that investors may have been anticipating even more from the AI darling. Shares were down approximately 3% to $127 during intraday trading. The stock has had a turbulent start to 2025, with shares down about 5% year-to-date, following a nearly threefold increase in value during 2024.
:max_bytes(150000):strip_icc():format(webp)/GettyImages-2192215403-b83fd81cbd854c3587c2fe593617f3a5.jpg) Nvidia CEO Jensen Huang delivers a keynote address at CES on January 6, 2025. (Patrick T. Fallon / Getty Images)
Analyst Perspectives: A Bullish Outlook Remains
Better-than-expected results have become almost typical for Nvidia, according to analysts at Morgan Stanley, with expectations continually rising ahead of the company’s reports. Despite the recent performance, Morgan Stanley analysts remain optimistic. “Everything improves from here,” they stated while raising their price target to $162 from $152. This increase is based on Nvidia’s positive outlook and growing demand for its new Blackwell chips.
Bank of America analysts echoed this sentiment and called the stock a “top pick on AI dominance,” raising their price target from $190 to $200. They noted that the revenue from Nvidia’s data center segment, which achieved record quarterly revenue, “potentially faces strong, long-term demand dynamics.”
Several of Nvidia’s major tech customers, including Microsoft (MSFT), Meta (META), Amazon (AMZN), and Google parent Alphabet (GOOGL), have announced plans to increase capital expenditures to boost their AI initiatives.
Positive Signals and Future Prospects
Wedbush analysts noted that the results indicated “few (if any) blemishes,” with “seemingly only good news ahead.” The firm maintained its price target of $175 and an “outperform” rating. Nvidia’s annual GPU Technology Conference is scheduled for March, with CEO Jensen Huang hinting at forthcoming “exciting things” to come in the wake of the Blackwell line of chips.
Jefferies analysts also expressed optimism, noting that the “supply chain should continue to improve, and we see no signs of demand issues.” The firm set a price target of $185. Nvidia’s Blackwell reported $11 billion in quarterly revenue, which CFO Colette Kress stated was the company’s fastest product ramp ever, according to an earnings call transcript provided by AlphaSense.
Despite recent losses, Nvidia shares have added nearly two-thirds of their value over the past 12 months, reflecting continued investor confidence in the company’s trajectory within the rapidly expanding AI landscape.
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