Nvidia earnings: analysts upbeat even as guidance underwhelms

Analysts maintained a largely positive view on NVIDIA Corporation (NASDAQ:NVDA ) after the chipmaker clocked consensus-beating third-quarter earnings and presented a modest outlook for revenue in the current quarter. 

The company clocked third-quarter adjusted earnings per share of $0.81, beating estimates of $0.75. It forecast a fourth-quarter revenue of $37.5 billion, plus or minus 2%, slightly above Reuters estimates of $37.09 billion.

The revenue forecast presented a sharp slowdown in Nvidia’s quarterly revenue growth, given that the company guided much stronger year-on-year increases in revenue for the past three quarters.

This was a point of contention for investors, with Nvidia’s shares initially falling as much as 5% in aftermarket trade on Wednesday. But they pared a bulk of these losses. 

Analysts, however, maintained a largely optimistic stance on the company, which became the world’s most valuable listed firm in the run-up to its earnings. 

A particular point of optimism was Nvidia’s upcoming Blackwell line of advanced artificial intelligence chips. The chipmaker reiterated that demand from the AI industry remained robust, and was expected to potentially outpace its ability to supply the new chips in the near-term.  Morgan Stanley- maintain Overweight, bullish on Blackwell transition

Morgan Stanley (NYSE:MS ) maintained its Overweight rating on Nvidia, stating that the incremental revenue guidance was as expected for what is set to be a “transitional quarter.” 

MS said the shift to Blackwall was set to be a major stock driver in the coming quarters, and that demand overshooting supply appeared to be the only limiting factor for growth. 

The brokerage hiked its revenue estimates for 2026.  BofA- Reiterate Buy, expect near-term churn but positive long term

BofA said that Nvidia’s guidance was below its bull case, and potentially disappointed some bulls. But the brokerage reiterated its Buy rating on the stock and said that strong demand, especially for Blackwell, was a major positive.

BofA cited overly high investor expectations, increased expenses and supply disruptions as potential risks for the stock.

“Expect stock to churn near-term as investors digest lack of “sizzle” but we continue to like the stock on its ‘substance,’” BofA analysts wrote in a note. Baird- Hikes PT, maintains Outperform on strong demand

Baird hiked its price target on Nvidia to $195 from $150, and maintained its Outperform rating on the stock. 

The brokerage said it saw no demand slowdown in sight, and that Nvidia was “uniquely positioned” to capitalize on a wave of enterprise demand for AI infrastructure.

 

Source: Investing.com