Nvidia Shares Rise on Boosted Price Targets and Billionaire Investor Buying
Shares of chipmaker Nvidia (NVDA) surged in pre-market trading after two Wall Street firms raised their price target on the company ahead of its second-quarter earnings report. UBS increased its price target by $65 to $540 per share, while Wells Fargo upped its objective by $50 to $500 per share. This optimistic outlook reflects the Street’s bullish view on the growing demand for AI chips, an area where Nvidia holds a significant advantage. Adding to the positive sentiment, billionaire investor Dan Loeb increased his stake in Nvidia by purchasing 500,000 shares through his hedge fund, Third Point LLC.
In pre-market trading, Nvidia shares were up 1.55%, indicating an opening bell price of $444.30 per share. This follows a 7.1% gain during Monday’s session, driven by a note from Morgan Stanley. Morgan Stanley analyst Joseph Moore, who has an overweight rating on Nvidia, believes that there is a substantial supply-demand imbalance in the AI chip sector and anticipates a continued shift in spending towards this emerging technology in the near term.
Nvidia is set to report its second-quarter earnings after the market closes on Wednesday, August 23. Analysts expect the company to report earnings of $2.07 per share on revenue of $11.131 billion. Earlier this year, Nvidia forecasted current-quarter revenue of around $11 billion, surpassing Wall Street’s estimates by more than 50%. With a gross margin of approximately 70%, this is expected to translate to earnings of around $2.04 per share.
In conclusion, Nvidia’s stock is on the rise as multiple Wall Street firms raise their price targets and billionaire investor Dan Loeb increases his stake in the company. The optimistic outlook is driven by the projected strong demand for AI chips and Nvidia’s leading position in the segment. Investors will be eagerly awaiting the company’s second-quarter earnings report to gain further insight into its financial performance.
Frequently Asked Questions (FAQs) Related to the Above News
Why did Nvidia's shares rise in pre-market trading?
Nvidia's shares rose in pre-market trading due to two Wall Street firms increasing their price target on the company ahead of its second-quarter earnings report. Additionally, billionaire investor Dan Loeb purchased 500,000 shares of Nvidia, boosting investor sentiment.
How much did UBS raise its price target on Nvidia?
UBS raised its price target on Nvidia by $65, setting it at $540 per share.
What was Wells Fargo's objective for Nvidia?
Wells Fargo raised its objective for Nvidia by $50, setting it at $500 per share.
What drives the optimistic outlook for Nvidia?
The optimistic outlook for Nvidia is driven by the Street's bullish view on the growing demand for AI chips, an area where Nvidia holds a significant advantage.
How much did Nvidia's shares increase in pre-market trading, and what was the anticipated opening bell price?
Nvidia's shares increased by 1.55% in pre-market trading, indicating an anticipated opening bell price of $444.30 per share.
Who is the billionaire investor that increased his stake in Nvidia?
The billionaire investor that increased his stake in Nvidia is Dan Loeb, through his hedge fund, Third Point LLC.
When is Nvidia set to report its second-quarter earnings?
Nvidia is set to report its second-quarter earnings after the market closes on Wednesday, August 23.
What are analysts' expectations for Nvidia's second-quarter earnings?
Analysts expect Nvidia to report earnings of $2.07 per share on revenue of $11.131 billion for the second quarter.
What did Nvidia forecast for its current-quarter revenue?
Nvidia forecasted current-quarter revenue of around $11 billion, surpassing Wall Street's estimates by more than 50%.
What is Nvidia's gross margin, and what is the expected earnings per share?
Nvidia has a gross margin of approximately 70%, which is expected to translate to earnings of around $2.04 per share.
What factors contributed to Nvidia's stock rise?
Multiple Wall Street firms raising their price targets and billionaire investor Dan Loeb increasing his stake in Nvidia contributed to the stock's rise. The projected strong demand for AI chips and Nvidia's leading position in the segment also drive the optimistic outlook.
When will investors have further insight into Nvidia's financial performance?
Investors will have further insight into Nvidia's financial performance after the company reports its second-quarter earnings.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
