Nvidia's 'flawless' results a 'bright green light' to own the stock, Wedbush says

Investing.com -- Nvidia (NASDAQ:NVDA ) reported earnings for the fiscal first quarter, and the “flawless” results are a nod for investors to own the stock heading into 2025, Wedbush analysts said Thursday.

The AI chipmaker topped expectations with a $2 billion revenue beat, reporting $35 billion in sales, a sequential increase of $5 billion fueled by strong data center performance.

"We would characterize results as another earnings press release from Nvidia that should be framed and hung in the Louvre given these eye-popping results and unprecedented growth from the Godfather of AI Jensen and Nvidia,” Wedbush analysts led by Daniel Ives wrote.

The company's next-generation Blackwell chips are ramping up production faster than anticipated, analysts highlight, with no overheating issues reported.

For the fourth quarter, Nvidia projected revenues of $37.5 billion, with a margin of plus or minus 2%. Wedbush analysts noted that on the higher end, this could imply revenue exceeding $39 billion as trends develop.

Although the guidance midpoint fell below some “whisper numbers” and triggered a negative investor reaction in after-hours trading, Wedbush believes the outlook is “conservative (as usual) and just starting the next stage of the AI Revolution.”

They think that the path to $4 trillion market cap is “now laid out by Nvidia,” which is bullish for the broader tech sector rally into year-end and 2025.

“In a nutshell, Nvidia's jaw-dropper print/guidance is a bright green light to own this AI Revolution theme into the next year in our view,” Ives and his team emphasized.

Nvidia’s data center segment saw a 154% increase in sales, reaching $26.3 billion in the second quarter ending July 28, surpassing expectations of $25.15 billion. This marked a 16% growth compared to the first quarter.

Adjusted earnings per share came in at 81 cents, also above analysts' projections of 75 cents per share.

Source: Investing.com