Shares of Nvidia (NVDA) rose as much as 1.9% early Wednesday ahead of the company’s highly anticipated quarterly earnings report, due after the closing bell.
Shares of the chipmaker hit an intraday high above $481 on Tuesday before losing ground during the session, falling 2.7% that day. On Monday, Nvidia shares rose more than 5%.
Wall Street analysts expect the chip giant to post adjusted earnings of $2.07 per share and revenue of $11.04 billion in the second quarter, according to data from Bloomberg.
Analysts have raised their price targets for Nvidia stock in a series of bullish calls over the past few weeks.
“We expect significant gains” for Nvidia’s second fiscal quarter, Tristan Gerra and his Baird team said in a recent note to investors. The company cited “highly significant momentum in AI demand for Nvidia” and raised its price target for the stock from $475 to $570 while maintaining its Outperform rating.
“NVIDIA remains our top pick amid the massive shift in spending toward AI, and a rather exceptional supply and demand imbalance that should persist for several quarters,” Joseph Moore and his Morgan Stanley team wrote in a letter. to customers.
Meanwhile, UBS analysts raised their price target from $475 to $540, writing that Nvidia “acts quite literally as ‘kingmaker’ as a massive surge of capital and new funding tools chase new AI software and specialized cloud infrastructure models.”
Nvidia shares have been on fire since the beginning of 2023 and are up more than 210% so far.
The chipmaker led the tech sector higher earlier this year as it entered the market amid an AI craze, thanks to its powerful graphics cards and server products.
Information technology stocks have pulled back somewhat in recent weeks on concerns about an overbought market and rising bond yields; August has also historically been a weak month for equities.
In the first two weeks of August, Nvidia shares fell as much as 12% from recent highs.
“We think the recent sell-off is a good starting point,” wrote Morgan Stanley’s Moore.
Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter @ines_ferre
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