analysts maintain bullish outlook even as guidance disappoints Investing.com

Investing.com — Analysts maintained a bullish view on NVIDIA Corporation (NASDAQ: ) even after some forecasts for the chip maker missed expectations, with buoyant demand from artificial intelligence and a robust product line expected to sustain the gains.

Nvidia shares fell as much as 8.5 percent in aftermarket trade, even as the firm beat expectations with its May-July quarter profit. The firm also announced a $50 billion buyback.

But its revenue guidance for the current quarter — of about $32.5 billion — missed some estimates, as did its gross margin outlook. Forecasts also showed a slowdown in the pace of growth compared to previous quarters.

Nvidia also confirmed that it was experiencing some difficulties with its Blackwell line of advanced AI chips, although they were still ready for release until the fourth quarter.

But despite the headwinds, analysts have maintained a largely bullish stance on the stock, with some brokerages even raising their price targets on the stock.

Blackwell delays ‘much ado about nothing’, PT – Truist said

Truist Securities said changes to Nvidia’s Blackwell line had a negligible impact on the company and its quarterly earnings reiterated the company’s leadership in AI.

The brokerage noted persistent, record-breaking growth in Nvidia’s key data center unit and also flagged a “stream of new products” that reflected the strength of the expansion.

Truist raised its PT on the stock to $148 from $145 and maintained a Buy rating on Nvidia, advising investors to “look through the fog.” The brokerage also called the sale of Nvidia shares unjustified.

NVDA product story back on track, Blackwell late in rear view – Jefferies

Jefferies said expectations for Nvidia’s earnings rose sharply ahead of the results and that demand for Nvidia’s current line of top AI chips, Hopper, remained strong.

Jefferies noted that the company’s guidance for the current quarter was good, but not good enough.

But the brokerage said fears of significant delays to the much-anticipated Blackwell line were now in the rearview mirror and the line was still expected to add to already solid earnings from the Hopper line.

Jefferies maintained its buy rating on the stock with a PT of $150, implying a 19% upside from current levels.

Optimistic view supported by Blackwell-Wolfe Research expectations

Wolfe Research said that while Nvidia’s guidance reflected a slower pace of growth, the brokerage’s bullish view on the stock was supported by expectations of strong revenue growth upon the eventual launch of the Blackwell line.

But the brokerage noted that a “successful and timely” launch of the new line was key to driving Nvidia’s future earnings.

Wolfe maintained an Outperform rating on Nvidia with a PT of $150.