Nvidia’s Q2 Revenue to Jump Over 60%, Earnings Could Disappoint

The Santa Clara, California- based multinational technology company, Nvidia is expected to report its second-quarter earnings of $1.02 per share, which represents year-over-year growth of over 50% from $2.18 per share seen in the same period a year ago.

The company, which designs graphics processing units for the gaming and professional markets, as well as system on a chip unit for the mobile computing and automotive market would post year-over-year revenue growth of over 60% to $6.3 billion. The company has delivered an earnings surprise in each of the last four consecutive quarters.

Nvidia shares have gained over 54% so far this year. The stocks ended 1.42% higher at $201.88 on Friday. But next week’s better-than-expected results could help the stock hit new all-time highs.

Analyst Comments

Nvidia stock has seen an impressive rise of 5% over the past week and currently trades at $206 per share. This rally was driven by expectations of strong earnings growth in the company’s upcoming Q2 2022 results, expected later this month. For Q1 2022, Nvidia posted stellar revenue growth, with revenue rising to $5.66 billion from$3.08 billion in Q1 2021, which helped drive the company’s net income to $1.91 billion from $917 million over this period. The strong jump in earnings came due to a combination of shrewd expense control and a slightly lower effective tax rate,” noted analysts at Trefis.

“After the recent rally, will Nvidia stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for Nvidia stock average close to 2.1% in the next one-month (21 trading days) period after experiencing a 5% rise over the previous one-week (five trading days) period.”

Nvidia Stock Price Forecast

Twenty-nine analysts who offered stock ratings for Nvidia in the last three months forecast the average price in 12 months of $209.42 with a high forecast of $250.00 and a low forecast of $150.00.

The average price target represents a 3.73% change from the last price of $201.88. From those 29 analysts, 28 rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

UBS raised the price target to $230 from $184. BofA lifted the price objective to $250 from $225. JPMorgan increased the price target to $215 from $176. Several other analysts have also updated their stock outlook. Wells Fargo raised the price target to $245 from $219.

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