Redburn Atlantic rates Nvidia (NVDA, Financials) as a "Buy" with a focus on artificial intelligence capabilities driven by rising processing power demand from enterprises, governments, and cloud service providers, adding to the list of positive market assessments for Nvidia.
In a client note led by analyst Timm Schulze-Melander, Redburn says that he thinks Nvidia will keep a 65% margin in earnings before interest and taxes. He also predicts that per-share income will grow at a rate of 38% per year until 2030. The first goal price is set at $178.
Nvidia's quarterly results are due on Nov. 20, and investors will be very interested in any information the company gives them about how much hardware people will want for AI in 2025. Given that Nvidia's processors are essential for artificial intelligence applications, analysts believe NVDA's earnings report will have an outsized impact on the market; similar to important economic data like the U.S. employment report.
With over 200% year-to-date gains, Nvidia shares have become very important for the success of the S&P 500 index. Alphabet (GOOGL, Financials) and Amazon (AMZN, Financials), both funding Nvidia's technologies for their AI-driven initiatives, are among its biggest consumers. This spending trend emphasizes Nvidia's role as a bellwether in the artificial intelligence industry as investors look for evidence of returns on significant AI investing.
With third-quarter sales projections of $32.5 billion, only slightly over Wall Street projections, Nvidia CEO Jensen Huang noted in August great demand for the Hopper processors. Although Nvidia sometimes exceeds estimates, its record for surpassing expectations has raised investor expectations.
From its delayed Blackwell chips, now planned to ramp up production in the fourth quarter and continue into fiscal 2026, Nvidia expects to make several billion dollars in sales, CFO Colette Kress remarked.
With Big Tech firms mostly depending on its processors for AI projects, Nvidia's stock performance and its central position in AI-related breakthroughs have raised its relevance in the tech industry.
