Earnings season has largely delivered positive results, but all eyes are on Nvidia (NVDA), the $5 trillion market-cap powerhouse, as it prepares to release its latest quarterly report next week.
The chipmaker is currently trading 7.6% below its all-time high of $212.19, set on October 29, prompting some investors to question the company’s near-term outlook amid its recent pullback.
As anticipation builds, Seeking Alpha analysts weigh in with both bullish and bearish perspectives, offering a clear look at what could lie ahead for Nvidia’s stock.
The Bulls
SA analyst Oakoff Investments stated: “I’m upgrading Nvidia to a ‘Buy’ ahead of its Q3 earnings… Despite concerns about AI CAPEX slowdown, major tech companies are increasing spending, and current AI investments remain well below historical peaks, indicating significant growth runway,” in Nvidia’s Q3: Poised For Another Blowout (Rating Upgrade).
SA analyst Weebler Finance indicated: “Nvidia Corporation appears expensive at first glance, but its growth prospects make it a strong value play relative to peers. While some fear an AI bubble, Nvidia’s long-term positioning at the core of AI computing makes it a compelling long-term buy,” in Nvidia: Now Is The Time To Double Down (Upgrade).
The Bears
SA analyst Paul Frnke said: “Nvidia Corp.’s trailing price-to-sales ratio of 28x is historically unsustainable for a $5 trillion company, raising serious red flags. A correction in the share price back to $150-170 into January looks increasingly probable,” in Nvidia Is Due For A Correction: Buying Interest Fading (Technical Analysis).
SA analyst James Foord echoed: “Nvidia Corporation faces a critical earnings report amid major challenges, including the loss of China as a data center customer and rising competition. I see significant risk factors as we head into earnings, with a lot of room for Nvidia to disappoint,” in Nvidia: The Big 3 Issues Before Earnings.
Additional NVDA Info
For investors looking for additional exposure to Nvidia, they can turn towards exchange traded funds as well. Listed here are some of the top funds allocated towards NVDA: (USD), (NVDU), (NVDL), (SHOC), (GXPT), (SMH), (SMHX), (SOXY), and (NVDW).
Performance and Rating
- 1-Month: +1.8%
- 6-Month: +57.1%
- Year-to-Date: +43.8%
- SA Quant Rating: 3.48
- SA Analyst Rating: 3.73
- Wall Street Rating: 4.65