Today we will talk about AI chipmaker Nvidia, which recently announced its second-quarter results. After these results, Nvidia’s shares fell, although the company slightly corrected the initial big decline. Let’s know what these results are and what analysts have to say about it.
Nvidia has recorded a record revenue of $30.04 billion in this quarter. At the same time, profits have doubled to 68 cents per share compared to last year. The company also expects revenue to improve in the next quarter, which could reach $32.5 billion. However, there may be some delay in the shipment of the company’s new Blackwell processors.
Nvidia CEO Jensen Huang said that the company is testing functional samples of Blackwell, Grace Blackwell, and other system configurations. He also pointed out that the demand for Nvidia’s Hopper chips is still very strong and the demand for Blackwell is also increasing.
Nvidia’s CFO Colette Kress said that Blackwell processors will generate “several billions” of dollars in revenue for the company in the fourth quarter of this fiscal year. However, the launch of Blackwell may have some impact on Nvidia’s profit margin, which declined to 75.7% in the second quarter and is likely to remain stable at 75% shortly.
Now let’s talk about analysts’ opinions. Goldman Sachs analyst Toshiya Hari has maintained a price target of $135 for the company, citing improvement in Nvidia’s data center revenue. At the same time, JPMorgan analyst Harlan Sur said that the two-month delay in Blackwell GPU shipments will not have much impact on Nvidia’s overall revenue. He has raised Nvidia’s price target by $40 to $155 per share.
Cantor Fitzgerald analyst C.J. Muse says that Blackwell’s delay should not be a major concern for investors. Piper Sandler analyst Harsh Kumar also maintained his $140 price target on Nvidia. Bernstein SocGen Group analyst Stacy Rasgon raised Nvidia’s price target by $25 to $150.
Overall, despite the decline in Nvidia’s shares, analysts believe that the company’s growth and rising demand for AI remain positive. It will be interesting to see how the company performs in the coming times.
