Nvidia (NASDAQ:NVDA) is one of the last major companies to report its latest quarterly results, with the semiconductor giant set to report its third-quarter results on November 20th.
Nvidia established itself as the world’s most valuable company on the strength of its quarterly announcements. But interestingly, Goldman Sachs’ Toshiya Hari, an analyst who ranks in the top 1% of Street stock experts, says the stock is “higher than the last three years” compared to his broader coverage. “This is well below the median P/E ratio.” As such, the five-star analyst believes the stock is “well set up to continue outperforming.”
This outperformance has resulted in returns of more than 200% over the past year, but Hari says the real “breakout” quarter is yet to come. However, that will be limited to the April quarter (FY1Q), where “Blackwell’s growth and improving supply-side conditions combine to drive a significantly positive EPS revision.”
As for the upcoming October quarter (FY3Q) results, Hari expects the F4Q guide and commentary to support his “constructive equity theory”, which is not bad either.
This positive theory is based on the fact that computing demand remains strong. Some of the company’s biggest customers, Alphabet, Microsoft and Amazon, released earnings last week, and while the pace of cloud revenue growth varies among the companies, all three said supply, rather than demand, “remains the constraining factor.” Showed. For example, Microsoft said it expects Azure revenue growth to accelerate again in the second half of 2025 (March and June quarters) as additional capacity becomes available.
Feedback from Nvidia’s partners and competitors also highlights a strong underlying market for AI infrastructure. AMD, for example, raised its total addressable market (TAM) forecast for AI accelerators from $400 billion by 2027 to $500 billion by 2028.
Hari said the “most frequent objection” to his positive investment thesis is that delays in AI adoption (ROI) will reduce spending on AI infrastructure, thereby impacting Nvidia’s revenue and profits. It states that it is possible to give. “While I agree that Nvidia will eventually experience periodic adjustments as customers go through the stages of digesting and optimizing their computing power,” he continued, . “We believe this is likely to happen in the near term, especially given the recent expansion of AI use cases.”
In conclusion, Hari rates NVDA stock as a “buy” and has a price target of $150. (Click here to see Hari’s track record)
The average street price target is slightly higher at $153.86. Overall, NVIDIA is rated a Strong Buy by analyst consensus, based on 39 Buy ratings and just 3 Holds. (See NVIDIA stock price forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
