nvidia poised for potential stock surge as earnings loom

2025-02-25 nvidia

New York, Tuesday, 25 February 2025.
nvidia’s upcoming earnings report has Wall Street buzzing with anticipation. Despite a recent $593 billion market value dip after the DeepSeek chatbot launch, analysts remain bullish. The average price target sits at $179.77, reflecting confidence in nvidia’s growth. Options traders are bracing for a potential 7.7% swing in the share price, which could translate to gains or losses of about $280 billion. Keep an eye on Blackwell commentary, as reaffirmation of shipments could fuel further stock appreciation.

analyst outlook and market sentiment

Analysts predict a substantial 72% increase in sales and a 43% rise in earnings for Nvidia next year [7]. Rosenblatt analyst Hans Mosesmann maintains a ‘buy’ rating with a $220 price target [3]. Mosesmann anticipates Nvidia will beat expectations for both the January and March quarters [3]. KeyBanc Capital Markets analyst John Vinh also increased Nvidia’s price target to $190, highlighting the impact of capacity constraints on Blackwell deliveries [3]. These projections reflect strong confidence in Nvidia’s continued dominance in the AI and data center markets [1][3].

key factors influencing stock performance

Nvidia’s stock performance hinges on several factors. These include Blackwell chip shipments, data center revenue, and overall AI landscape developments [3][7]. The company’s data centers generated $30.77 billion in revenue in the third quarter of fiscal year 2025 [7]. Experts anticipate a revenue of $33.17 billion for the fourth quarter [7]. A surge in demand for Hopper GPUs from Chinese cloud-service providers also plays a role [3]. Investors are keen to hear updates on Nvidia’s roadmap at the upcoming GTC conference in March [3].

potential challenges and risks

Despite the optimistic outlook, challenges remain for Nvidia. Veteran fund manager Doug Kass suggests the ‘law of large numbers’ could hinder growth [6]. Kass also notes concerns about supply outpacing demand and potential production problems [6]. He believes Nvidia’s profit margins may have peaked and will decline [6]. The release of DeepSeek, a free open-source language model, caused a temporary dip in Nvidia’s shares, highlighting the competitive pressures [3][7]. Hedge funds have also reduced their exposure to ‘Magnificent Seven’ megacaps, including Nvidia [8].

technical analysis and price predictions

Technical analysis reveals crucial support levels for Nvidia’s stock at $130, $113, and $102 [2]. Key resistance levels are near $153 and $174 [2]. A breakout above the descending channel could lead to another attempt at the $153 level [2]. Longforecast.com predicts a volatile few months, with a potential drop to $99 by May 2025, before a gradual recovery [4]. However, longer-term forecasts remain positive, with potential for significant growth through 2029 [4]. On February 24, 2025, Nvidia stock closed at $130.28 [4].

Bronnen

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