Thursday, August 28, 2025

"Nvidia earnings send the stock lower. Here's what Wall Street has to say" (NVDA)

From MarketWatch: 
Last Updated:
Aug. 28, 2025 at 7:30 AM EDT

Nvidia reported fiscal second-quarter earnings after the closing bell Wednesday. While the company beat overall expectations, it came up short in its data-center business and likely didn't offer enough upside to please Wall Street when it came to the outlook for the current quarter.... 

HSBC analyst Frank Lee isn't ready to turn bullish on Nvidia's stock, saying that he would need to see cloud capital-expenditure forecasts move even higher for next year before straying from his "hold" rating.

"We see limited room for further earnings upside revision or share-price catalyst in the near-term unless we have increasing clarity" on the potential for upside to 2026 cloud spending, he said in a Thursday note to clients. Additional expansion in capital spending from the big cloud providers is necessary to fuel earnings upside for Nvidia next year, in Lee's view.

By his assessment, it's been five quarters since Nvidia posted "a significant beat and raise," and factors like "near-term supply inconsistency and China uncertainty" could remain overhangs for the stock.

Nvidia "remains center of the AI bull's eye," according to Oppenheimer analyst Rick Schafer, and that's one reason he's feeling increasingly upbeat about the stock.

Schafer lifted his price target on Nvidia shares to $225 from $200, cheering an acceleration in networking revenues and a pathway to $20 billion in revenue from sovereign AI this year. That would be double what was recorded last year.

He continues to like Nvidia's "entrenched" ecosystem for data-center artificial intelligence and said that the company has some of the strongest gross and operating margins among its peers....

....MUCH MORE 

It was ever thus:

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