- Nvidia stock trimmed gains Friday after a strong showing on the back of Citigroup’s positive note on Thursday.
- Analyst Atif Malik’s EPS estimates are 2%-5% ahead of street estimates, which implies Nvidia could post a $US2.94 EPS figure when the company reports earnings on February 11.
- Nvidia now boasts 30 Buy ratings, 5 hold ratings, and just 4 Sell ratings from analysts.
- Visit Business Insider’s homepage for more stories.
Shares of Nvidia trimmed gains Friday after surging some 4.3% Thursday on a strong outlook from Citigroup. The stock was down around 1% early Friday afternoon.
Citigroup analyst Atif Malik said in a note that Nvidia’s stock has lagged its chip manufacturing peers and could offer upside potential ahead of next week’s virtual CES conference.
Nvidia was added to Citi’s “Catalyst Watch List” and the bank maintained its $US600 price target.
Malik noted Nvidia has fallen over 15% from its early November high of over $US580 per share, while the iShares semiconductor index SOXX has gained over 24% during the same period.
Citi expects hyperscale-led data centre demand recovery in the first half of 2021 and sustained PC gaming demand to drive an EPS boost.
Their analysts’ EPS estimates for Nvidia remain 2%-5% above street projections.
That’s worth noting, as Street analysts already expect Nvidia to grow its earnings by 48% in the January quarter to $US2.80 per share. That’s on top of 55% year-over-year sales growth which will see Nvidia closing on the $US5 billion revenue mark for the quarter.
Investing legend Terry Smith’s $US30 billion equity fund returned 449% to investors over a decade – Here’s his 4-part strategy for success and 10 pieces of investing wisdom to take into 2021
This news comes just weeks after Wells Fargo boosted their price target for the chip manufacturer to $US625 per share from $US600 per share.
As of Friday, Nvidia boasted 30 Buy ratings, 5 Hold ratings, and just 4 Sell ratings from analysts, per MarketBeat.
Shares of Nvidia are down over 1% Friday afternoon, trading at $US529.07 per share as of 12:55pm E.T.
Business Insider Emails & Alerts
Site highlights each day to your inbox.