Nvidia Corp. (NASDAQ:NVDA) shares rose solidly in premarket trading on Thursday after the Santa Clara, California-based chipmaker reported second-quarter earnings and revenue that notably exceeded expectations.
More importantly, the company issued upbeat guidance, with the revenue estimate coming in above Wall Street’s bullish projections.
The company also said there is visibility into 2024 and that it planned to increase supply each quarter through next year to meet demand.
The stellar performance was premised on strong uptake for its high-performance chips that are in demand as the AI revolution gets entrenched. Wedbush analyst Daniel Ives sees Nvidia’s results as the barometer of AI demand and said the company’s strong results will catalyze a tech sector-wide rally through the year-end.
The solid results have prompted sell-side analysts to raise forward estimates for the company and in turn the price targets.
- KeyBanc Capital Markets analyst John Vinh maintained an Overweight rating and lifted the price target from $620 to $670.
- Barclays maintained an Overweight rating and hiked the price target from $600 to $650.
- Rosenblatt Securities maintained a Buy rating and increased the price target from $800 to $1,100.
- Deutsche Bank maintained a Hold rating and upped the price target from $440 to $560.
- Stifel upgraded the stock’s rating from Hold to Buy and increased the price target from $440 to $600.
In premarket trading, Nvidia shares climbed 8.08% to $509.25, according to Benzinga Pro data. The stock is on track to open above its previous intraday high of $480.88 hit in mid-July.
See Also: How To Buy Nvidia (NVDA) Stock
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