Nvidia fell after the report for the fourth straight time. Is it all that bad? Wall Street answers

Despite a strong report that received optimistic assessments on Wall Street, shares of Nvidia, the industry's largest AI chipmaker, fell 1.77% to $219.5 after the release of its financial results. Thus, shares of the chipmaker fell in the first trading after the publication of reports for the fourth consecutive quarter: such has not happened since 2002, noted MarketWatch. How analysts explain it and what they expect from the company's shares - we tell you.

- In many ways, Nvidia is "a gift that never fails to delight," wrote D.A. Davidson analyst Gil Luria. He's encouraged that Nvidia sees big opportunities for itself in the central processing unit (CPU) market, not just the graphics processing unit (GPU) market that brought it the lead in the AI race, MarketWatch reported. "If its status as the world's largest GPU vendor wasn't enough, executives noted on the conference call that Nvidia expects to generate about $20 billion in CPU revenue this year," Luria noted. He also highlighted CEO Jensen Huang's expectations: the upcoming Vera Rubin platform should generate even more demand than the previous generation Grace Blackwell, thanks to interest from developers of the largest AI models.

- Baird raised its target price on Nvidia stock from $300 to $500 and maintained an Outperform rating ("Outperform"), which equates to a Buy recommendation. Baird's target corresponds to the highest on Wall Street for Nvidia shares, according to The Wall Street Journal.

- Evercore ISI increased its target price on Nvidia stock from $352 to $413 and reiterated an "above market" recommendation, too. "The dividend has been raised from $0.01 to $0.25 per share (now a $6 billion return of capital per quarter versus $250 million previously), and additional plans for an $80 billion buyback (on top of the existing $39 billion) indicate the possibility of a higher return of capital in calendar year 2026 than the $120 billion we previously forecast," Investing.com quoted the bank's note.

- BofA Securities raised its target on Nvidia shares to $350 from $320 and maintained a buy recommendation on the security. "We note the unprecedented diversity of Nvidia's growth drivers, from hyperscaler sales to AI Cloud, industrial and enterprise," Investing.com reports. - The revenue mix is roughly 50/50 right now, but we think the second area will grow faster as AI adoption expands. Nvidia has a near-monopoly here thanks to AI factories and full platform support - areas that custom [chips from IT giants like Google and Amazon] ASICs can't cover."

- Wedbush raised its target price on Nvidia shares to $330 from $300 and maintained an "outperform" rating on the stock. Nvidia expects total spending on AI infrastructure to be between $3 trillion and $4 trillion by the end of the decade, writes Wedbush analyst Dan Ives, quoted by MarketWatch. He notes that such an estimate suggests that "the chip market remains Nvidia's world, and everyone else in it is just paying rent." Ives believes the company showed a "quarterly master class." He was also encouraged by Nvidia's forecast of $20 billion in revenue from Vera CPUs this year.

- Bernstein changed its target price on Nvidia stock from $300 to $315 and reiterated an "above market" recommendation. "The Ma was a strong and, at first glance, rather quiet quarter - at least for Nvidia: the company again delivered strong results, which investors have grown accustomed to, and also announced a return of capital, [...] which we believe some shareholders have been waiting for," the investment bank's analysts said in a note quoted by Investing.com.

- Jefferies and Mizuho raised their target on Nvidia shares from $275 to $300, and both banks maintain a buy recommendation on the stock.

- Morgan Stanley raised its target on Nvidia shares from $285 to $288 and maintained an "above market" recommendation. "Amid the sudden surge of interest in CPUs, the company's claim of revenue share leadership looks quite interesting. The relative valuation gap [with competitors] is too wide to ignore, and the company's position as the most important AI chip vendor remains undeniable in our view," the bank's analysts said in a note quoted by Investing.com.

- Goldman Sachs raised its target price on Nvidia shares to $285 from $250 and maintained a buy recommendation on them. "We see a clearer path for the stock to perform better than the market in the coming months due to two key factors," Goldman Sachs analyst James Schneider wrote in a note quoted by Investing.com. - First, we expect hyper-skillers' capital expenditure forecasts to improve [...]. Second, we believe Nvidia's improved capital allocation should bolster investor confidence in the company's commitment to balancing product innovation, ecosystem investment, and shareholder returns."

- Seaport Research analyst Joe Goldberg remains one of the "bears" on Nvidia stock. He fears the company has not played its cards well in securing manufacturing capacity from Taiwan's TSMC, MarketWatch writes. Goldberg raised his target on the stock from $140 to $180, but maintained a Sell recommendation on the stock. "Nvidia continues to execute its strategy well, but has gotten so large that it now has to deal with many factors beyond its control," Goldberg wrote. - Chief among them is TSMC's capacity allocation. AMD seems to have gotten extra supply by taking resources that smartphone makers don't need this year. For whatever reason, Nvidia has not been able to similarly improve its position." In his opinion, Nvidia is "leaving money on the table" because it won't be able to fully meet the booming demand. Goldberg also believes that by doing so, Nvidia has created a window of opportunity for two competitors in the chip market - AMD and Google.

This article was AI-translated and verified by a human editor