What’s Going On With Nvidia Stock Monday?

ZINGER KEY POINT

NVIDIA Corp shares are trading higher Monday. Multiple analysts raised price targets on the stock ahead of earnings this week. Here’s a look at what you need to know.

What To Know: 

The positive analyst updates come just days ahead of earnings. Nvidia is set to report its fiscal first-quarter financial results after the market close on Wednesday. The company is expected to report earnings of $5.58 per share on quarterly revenue of $24.602 billion, according to estimates from Benzinga Pro.

Last quarter, Nvidia beat analyst estimates on the top and bottom lines, turning in revenue of $22.1 billion versus estimates of $20.62 billion and earnings of $5.16 per share versus estimates of $4.64 per share.

Nvidia CEO Jensen Huang highlighted a “tipping point” of surging demand for accelerated computing and generative AI and said he expects 2024 to bring major new product cycles and exceptional innovations to help propel the industry forward.

On the conference call following the company's quarterly results, Huang noted that the company had been unable to keep up with demand in the short term, adding that conditions were excellent for continued growth.

Nvidia guided for revenue in the first quarter of approximately $24 billion, plus or minus 2% and non-GAAP gross margins of 77%.

Nvidia has turned in several consecutive blowout quarters despite facing lofty expectations due to surging demand for the company’s AI chips. All eyes will be on the chipmaker this week as the company’s quarterly results are likely to influence the direction of the broader market.

NVDA Price Action: 

Nvidia shares were up 1.27% at $936.54 at the time of publication, according to Benzinga Pro.

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Originally Posted May 20, 2024 – What's Going On With Nvidia Stock Monday?