NVIDIA opened up 6%! Wall Street praises "excellent" performance and outlook

Even considering the recent U.S. export controls on China, Wall Street institutions have not hesitated to praise NVIDIA's performance and outlook, which far exceeded expectations, deeming its performance extraordinary. The current world seems to belong to NVIDIA, and people are living in the wave of its era.

As of the time of writing, NVIDIA's stock rose 5.56% in pre-market trading, poised to reclaim the title of the most valuable company. Other semiconductor companies such as Advanced Micro Devices (AMD.US), Marvell Technology (MRVL.US), and Broadcom (AVGO.US) also saw their stock prices rise.

Wedbush Securities analyst Dan Ives described the quarterly performance as "solid," noting that even when considering the factors of the Chinese market, comments regarding demand remained "very positive."

Ives wrote in his report: "We have always believed that as this fourth industrial revolution, led by NVIDIA's 'chips driving global AI development,' progresses, NVIDIA is expected to achieve a market value of $4 trillion in the coming years, ultimately moving towards a market value of $5 trillion."

Ives also pointed out that recent collaborative projects in Saudi Arabia and the UAE are preliminary signs of sovereign nations and government demand mentioned by Jensen Huang (CEO of NVIDIA). Moreover, given that U.S.-China trade negotiations seem to be progressing smoothly, NVIDIA is expected to recover the $8 billion in revenue lost due to the H20 ban and may even achieve further revenue growth.

Ives added: "This is an extremely important earnings report and outlook guidance for the entire tech industry, indicating that even though the Trump tariff war is still ongoing, the AI revolution will still enter the next growth phase."

The head of the "Tech Contrarian Investor" investment group and Tech Stock Pros noted that NVIDIA's performance after the H20 ban provided a "much-needed confidence reset." They stated via email: "The key is that, at least for the next two quarters, NVIDIA's growth story has gotten back on track following this earnings report."

Morgan Stanley analyst Joseph Moore stated that with the latest performance and outlook, NVIDIA has "completely" dispelled market concerns about its business absorption capacity, and its business is showing accelerated growth in all regions except for the Chinese market.

Moore added: "Everything will develop positively from here." He reiterated his "overweight" rating on NVIDIA and raised the target price from $160 to $170.

Bank of America analyst Vivek Arya also raised the target price (from $160 to $180) and stated that given the massive demand for AI now coming from sovereign nations, he believes NVIDIA has long-term earnings potential of $10 per share.

Jefferies analyst Blayne Curtis stated that NVIDIA is "all set," with performance indicating that its supply challenges have eased, and other business segments previously troubled, such as networking and gaming, have also returned to healthy growth Curtis wrote: "The biggest problem with the stock used to be the disconnect between Blackwell chip sales and GB200 shipments, but that is now a thing of the past, as NVIDIA mentioned that multiple hyperscale data center customers are increasing their weekly purchases of 1,000 NVL72 chips." Curtis added that for NVIDIA, the second half of this year looks "very promising," and it is likely to exceed expectations and raise its outlook based on this.

In addition, JP Morgan analyst Harlan Sur stated that these results indicate that NVIDIA is likely to maintain its industry-leading position.

Sur wrote: "The key is that the NVIDIA team continues to stay 1-2 steps ahead of its competitors with its chip/hardware/software platform and strong ecosystem, and over time, through an aggressive new product release cadence and more refined product segmentation, the company is further widening the gap with its competitors."