Nvidia Corp. (NASDAQ: NVDA), which is already 30% higher than its low of August, may extend gains over the next few months.
Sundar Pichai, the CEO of Google’s most recent earnings call may have played a part in this.
Pichai told investors recently that “the risk of us overinvesting is greater than our risk of underinvesting.”
This is good news for Nvidia, as it produces the most advanced chips that power artificial intelligence.
Nvidia may offer optimistic guidance on the 28th of August
Other tech giants such as Meta Platforms and Microsoft are also investing heavily in AI infrastructure.
During their most recent earnings conference, all three companies indicated that they plan to increase capital expenditures in order to improve their position within artificial intelligence.
The NVDA’s management may find that the positive comments on AI made by these big names will be enough to provide them with stellar advice for their future, on August 28, if they choose to do so.
The impressive guidance of Nvidia will probably fix the recent doom surrounding the demand for its GPUs, and may therefore unlock the next leg in Nvidia’s stock.
How can Nvidia surpass Street expectations in the second quarter of its fiscal year?
Nvidia shares may be still attractive, despite recent gains. This is because Elon Musk – the CEO of Tesla Inc. – gave a big compliment to the Nasdaq listed firm on July 23 .
I’m extremely impressed with Nvidia and their ability to produce hardware. We’ve seen that Nvidia’s hardware demand is so great that GPUs are often hard to come by.
It’s possible that Nvidia’s second quarter results on 28 August will be well above the Street expectations, given this billionaire’s comment.
According to the consensus, chipmaker is expected to post a Q2 revenue of $28,6 billion on earnings per share at 64 cents.
NVDA has a track record of exceeding its own projections.
In Q4, CEO Jensen Huang, for instance, guided $24 billion for revenue in the first quarter. However the company actually generated $26.9 billion which is 8.3% higher than their estimates.
Together, these factors indicate the possibility of a further rally for Nvidia’s stock in the future.
The ICD published the article Nvidia Stock Could Soar After August 28: Google Could Be The Reason.
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