Nvidia Racing Back To $500? Chipmaker's Stock Spikes Higher In Dramatic Premarket Reversal
Portfolio Pulse from Shanthi Rexaline
Nvidia Corp. (NASDAQ:NVDA) experienced a premarket reversal, recovering from earlier losses and Tuesday's after-hours trading decline. This change in direction occurred after analysts dismissed concerns about China that Nvidia highlighted, focusing instead on the company's strong quarterly earnings. Nvidia reported Q3 non-GAAP earnings of $4.02 per share on revenue of $18.12 billion, surpassing consensus estimates. The company's record Data Center revenues were driven by demand for accelerated computing and generative AI. Despite anticipating lower contributions from China due to U.S. export restrictions, Nvidia expects to compensate with robust global demand. The company's Q4 revenue guidance of $20 billion is ahead of consensus estimates but below the whisper number. KeyBanc analyst John Vinh maintained an Outperform rating with a $650 price target. Nvidia's stock rose 1.35% to $506.20 in premarket trading on Wednesday.
November 22, 2023 | 11:46 am
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POSITIVE IMPACT
Nvidia's strong Q3 earnings and positive Q4 revenue guidance, despite China concerns, have led to a premarket stock price increase. Analysts remain optimistic, with KeyBanc maintaining an Outperform rating and a $650 price target.
Nvidia's stock price is likely to experience a short-term positive impact due to the strong earnings report and the optimistic revenue guidance for Q4. The concerns about China's contribution seem to be outweighed by the overall positive sentiment and the reaffirmation from analysts, such as KeyBanc's Outperform rating and $650 price target. The premarket stock movement indicates investor confidence in the company's ability to navigate regulatory challenges and maintain growth.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100