Following a beat on both the top and bottom lines and good outlook for the coming quarter, shares of chipmaker Nvidia increased 5% in early trade on Thursday.
In contrast to the Refinitiv consensus forecast of $2.09, Nvidia’s adjusted earnings per share for the fiscal second quarter came in at $2.70. In addition, the business revealed quarterly revenue of $13.51 billion, exceeding the average expectation of $11.22 billion.
Additionally, analysts focused on the future quarter’s excellent projection. For the third quarter of its fiscal year, the corporation anticipates revenue of about $16 billion, an increase of 170% from the same quarter last year.
Harlan Sur of JPMorgan raised his price target for the stock from $500 to $600 while maintaining an Overweight rating.
“Expectations were high coming into the print and the team managed to produce results/outlook that were substantially beyond buy side expectations,” Sur said in a note to clients on Thursday. “This was driven by the tremendous demand pull for its datacenter solutions.”