As Nvidia (NVDA) approaches its upcoming earnings report, Raymond James analysts are optimistic about the company’s performance, forecasting a robust quarter driven by strong demand for its artificial intelligence (AI) chips.
In their latest assessment, the analysts maintained a “strong buy” rating for Nvidia, emphasizing that they expect the company to deliver solid results despite recent concerns over delays related to the Blackwell chip. “We are looking for another strong quarter from NVDA despite the noise surrounding Blackwell delays,” they stated.
Earlier this month, reports of Blackwell chip delays led to a decline in Nvidia’s stock price. However, Nvidia has reassured investors that production remains on schedule to ramp up in the latter half of the year. Investors will be closely monitoring the upcoming earnings report, set for release on August 28, to gauge the impact of these delays.
The Raymond James analysts forecast a “modest” contribution from Blackwell in the fiscal third quarter, suggesting that any delays might temporarily boost sales of the Hopper chip, which precedes Blackwell. While they acknowledge that extended delays could potentially lead to a customer spending pause, they expressed confidence in Nvidia’s ability to deliver Blackwell by year-end.
Other industry analysts share a similar sentiment, indicating that concerns about the delays may be exaggerated. They have not observed any signs of a slowdown in AI demand, with major tech companies continuing to invest heavily in AI infrastructure, which supports Nvidia’s data center sales.
The analysts pointed out that Nvidia has exceeded revenue and outlook expectations in its past four earnings reports. Although Nvidia has a history of outperforming projections, rising market expectations for AI-related stocks have set a higher bar for the company.
On Wednesday, Nvidia shares closed approximately 1% higher at $128.50, marking more than a doubling of the stock’s value since the beginning of the year.
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