Stifel’s Top Analyst Urges: ’Buy Nvidia Stock Now’ Before Q2 Earnings Drop
Nvidia's Q2 earnings loom—and one Wall Street voice says get in position.
Why The Hype?
Stifel’s go-to analyst slaps a 'Buy' rating on Nvidia, betting big on another blowout quarter. No specifics on figures—just raw conviction that the chip giant’s run isn’t over.
The AI Engine Roars
Data centers crave horsepower. Gaming demand hasn’t flatlined. And autonomous everything keeps ticking—all roads still lead back to Nvidia’s silicon.
Timing The Trade
Earnings could spark a rally—or a classic 'buy the rumor, sell the news' letdown. But if you believe the analyst, waiting might mean missing the next leg up.
Let’s be real—since when did Wall Street ever hesitate to hype a stock before earnings? Sometimes they’re right. Often, they’re just early.
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Analyst Expects a Q2 Beat and Solid Q3 Guidance
Roy noted that Wall Street expects Q2 revenue of $45.8 billion, slightly above Nvidia’s own outlook of $45 billion. He believes Nvidia could deliver a modest beat, helped by higher spending from cloud providers and the resumption of H20 chip shipments to China.
He also highlighted that demand remains robust and supply issues appear limited, which should support healthy sequential growth into Q3.
Demand Still Strong Despite Concerns
The analyst admitted some investors are worried about whether Nvidia’s fast growth can be sustained, especially with concerns of an “AI bubble” and a slower-than-expected GPT-5 launch.
Even so, Roy stressed that hyperscaler capital spending remains strong and Nvidia’s lead in AI hardware is intact. He also pointed out that the new GB300 chip offers a 50% performance boost over the GB200, which should fuel strong orders through the rest of the year.
Stifel Weighs Margin Risks and China Growth Potential
On the margin front, Roy expects some pressure as Nvidia ramps up GB300 production, but he believes overall profitability will remain strong, with gross margins staying in the mid-70% range by year-end.
He also noted that while China is promoting local chip alternatives, Nvidia’s products are still vital for the market. Capturing even a small share of China’s $50 billion AI accelerator market could be a meaningful driver, he added.
Looking ahead, Roy believes Nvidia is in a strong position to benefit from AI demand through at least 2030, backed by ongoing spending from cloud providers, governments, and enterprises.
What Is the Target Price of Nvidia Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, three Holds, and one Sell assigned in the last three months. At $198.57, the Nvidia share price target implies an 11.56% upside potential.
