Nvidia navigates through investor expectations and surprises positively

The sentiment among analysts regarding Nvidia is marked by optimism, as the company gains points with potential stock buybacks and a strong market position. The semiconductor giant's long-awaited quarterly report generated satisfaction on Wall Street despite high expectations. Although Nvidia exceeded average forecasts for revenue and profit, the figures did not reach the most ambitious expectations. The revenue forecast for the fourth quarter was narrower than in previous reporting periods. However, this did not prevent analysts from looking more optimistically to the future. With the upcoming launch of the Blackwell chip, a significant increase in revenue is expected, which led to target price increases by over 20 analyst firms. JPMorgan raised the target price for Nvidia to $170, up from the previous $155. The company has established a significant competitive barrier, according to analyst Harlan Sur, and further distinguishes itself from the competition with a variety of new products and segmentations. Goldman Sachs also raised its expectations, setting the target price at $165. They anticipate more than $200 billion in revenue next year. An extraordinary move could further benefit Nvidia: massive planned stock buybacks. In the third quarter alone, Nvidia increased its buybacks by 188% year-over-year to $11 billion. Looking ahead, Goldman sees a potential buyback volume of $181 billion by 2026. Ben Reitzes of Melius Research has clear words: "This is a true windfall. At some point, more shares need to be bought back because the capital cannot be used otherwise." Rosenblatt Securities maintains a positive outlook with a target price of $220, which represents a potential price gain of 52% compared to Thursday morning. Even DA Davidson, typically critical due to valuation concerns, raised its target price to $135. Gil Luria of DA Davidson states that despite limited insights into the market development of the Blackwell chip, strong demand amid similar supply constraints as with the Hopper is to be expected.