The chip maker’s shares cemented a 6-session winning streak
Nvidia Corp. shares are up more than 30% from their low point earlier in August, helped by a six-day winning streak that’s their longest in almost five months.
The stock NVDA 4.35% is ahead 24% over the past six trading sessions, having just cemented its longest consecutive run of gains since a six-day winning streak that wrapped up March 25, according to Dow Jones Market Data. While investors earlier in the month had been more cautious about momentum-oriented plays, the artificial-intelligence trade has stormed back with a vengeance recently.
Nvidia shares have been the best performer in the Nasdaq-100 Index NDX 1.32% since the low on Aug. 7, according to Dow Jones Market Data.
And a big potential catalyst sits on the horizon. Nvidia is due to report fiscal second-quarter earnings next Wednesday afternoon, and Goldman Sachs analyst Toshiya Hari is feeling upbeat on balance.
“While the reported delay in Blackwell … could lead to some near-term volatility in fundamentals, we expect management commentary coupled with supply-chain data points over the coming weeks to lead to higher conviction as it pertains to Nvidia’s earnings power” next calendar year, he wrote in a note to clients Sunday.
Blackwell is Nvidia’s new chip lineup, and recent reports indicated that initial shipments might be delayed. Nvidia’s management is expected to share more on shipment timing on the company’s earnings call. But regardless of what the company says about the short term, Hari thinks a delay would have minimal impact on earnings power for calendar 2025.
More generally, Hari believes investors would “look through any negative impact from any shift in the timing of the Blackwell ramp.” Meanwhile, the company is expected to post “robust sequential data-center revenue growth, outside of any transitory headwinds related to Blackwell,” since the company’s Hopper line should maintain momentum. Nvidia’s networking business also has a compelling growth profile.
Hari pointed to some upbeat signals around the industry in the time since Nvidia last reported results. For instance, Taiwan Semiconductor Manufacturing Co. TSM 0.52% posted 28% sequential growth in revenue from high-performance computing, and Advanced Micro Devices Inc. AMD 4.52% again boosted its full-year outlook for AI-accelerator revenue. Plus, hyperscale cloud providers indicated either implicitly or more directly that they intended to increase their spending on AI infrastructure through the balance of the year.
Those are suggestive of “a robust demand environment,” in Hari’s view.
He has a buy rating and $135 target price on Nvidia shares, which are also on Goldman’s “conviction list.”