Copyright Barchart
Valued at a whopping $4.5 trillion by market cap, Santa Clara, California-based NVIDIA Corporation (NVDA) stands as the largest semiconductor company in the world. The company’s invention of the GPU revolutionized PC gaming and redefined computer graphics. Over the years, NVIDIA has pivoted toward designing advanced AI chips, which now serve as the backbone of generative AI. The semiconductor giant is gearing up to release its third-quarter results in the upcoming month. Ahead of the event, analysts expect NVIDIA to report a profit of $1.17 per share, up a staggering 50% from $0.78 per share reported in the year-ago quarter. While the company has missed the Street’s bottom-line estimates once over the past four quarters, it has surpassed the projections on three other occasions. For the full fiscal 2026, NVIDIA is expected to deliver an EPS of $4.22, up a notable 44% from $2.93 in fiscal 2025. While in fiscal 2027, its earnings are expected to grow 40.3% year-over-year to $5.92 per share. NVDA stock prices have soared 32.7% over the past 52 weeks, notably outpacing the S&P 500 Index’s ($SPX) 16.9% gains and the Technology Select Sector SPDR Fund’s (XLK) 28.1% surge during the same time frame. NVIDIA’s stock prices observed a marginal dip in the trading session following the release of its Q2 results on Aug. 27. During the quarter, the company registered a staggering 49% year-over-year growth in gaming revenues to $4.3 billion and an even more impressive 56% surge in data center revenues to $41.1 billion. Overall, NVIDIA’s topline came in at $46.7 billion, up 55.6% year-over-year and 1.3% ahead of the Street’s expectations. Meanwhile, its EPS increased 29.6% year-over-year to $1.05, beating the consensus estimates by a notable margin. However, due to policy changes and trade restrictions, the company wasn’t able to sell any of its high-tech H20 chips to China-based customers during the quarter, which wasn’t received well by the investors. Analysts remain highly optimistic about the stock’s prospects. NVDA maintains a consensus “Strong Buy” rating overall. Of the 47 analysts covering the stock, opinions include 40 “Strong Buys,” two “Moderate Buys,” four “Holds,” and one “Strong Sell.” Its mean price target of $222 suggests a 19.2% upside potential from current price levels.
