With Nvidia's upcoming release of second-quarter financial report, the stock price has experienced a volatile trend, and analysts have raised the target price to $145 at a critical moment.
Before the release of the second quarter financial report in August, $NVIDIA (NVDA.US)$ Nvidia's stock investors experienced a roller-coaster market. Its stock price fell below $100 on August 5, then rebounded, and rose for six consecutive days between the 12th and the 19th. As of August 21, Nvidia's stock price was approximately $128. At the time of writing, Nvidia has risen by nearly 1%.
The initial stock price plunge of NVIDIA in August is partly attributed to the turmoil in the global market after the yen arbitrage trading, as well as chip delivery delays that may be caused by design flaws in the Blackwell architecture.
This chip giant is still a leader in the AI industry, holding 80% of the AI processor market share. However, competitors like AMD are speeding up.
On August 19th, $Advanced Micro Devices (AMD.US)$ Announced the acquisition of ZT Systems for $5 billion to increase its GPU sales. The next trading day, Nvidia's stock price fell by 2%.
NVIDIA will release its financial report for the second quarter of the 2025 fiscal year on August 28th. Regardless of the results, this will be an important indicator for the AI and semiconductor industries. The financial reports of other chip makers can serve as important references for predicting earnings and future stock price trends.
The second-ranked player in the market, AMD, reported a strong second quarter financial report on July 30th, with both revenue and profit exceeding analysts' expectations. Revenue grew by 9%, reaching $5.84 billion, and earnings per share grew by 19%, reaching 69 cents. AMD also expects strong future AI demand.
However, $Intel (INTC.US)$ Due to lower-than-expected financial results, the company's stock plummeted. On August 1st, the company reported a net loss of $1.61 billion, compared to a net income of $1.48 billion in the same period last year. Revenue and earnings also fell below analysts' expectations.
Intel attributed the losses to the decision to faster produce the Core Ultra PC chips capable of handling AI workloads, according to CEO Pat Gelsinger.
Record-breaking expected revenue after the first quarter
Nvidia reported record quarterly revenue of $26 billion in the first quarter of the 2025 fiscal year, an 18% increase from the fourth quarter and a 262% year-on-year increase.
The AI giant expects revenue for the second quarter of the 2025 fiscal year to be $28 billion, with GAAP and non-GAAP gross margins forecasted at 74.8% and 75.5% respectively. In comparison, the reported revenue for the second quarter of fiscal year 2024 was $13.51 billion, with GAAP and non-GAAP gross margins of 70.1% and 71.2% respectively.
"The next industrial revolution has begun - companies and countries are partnering with Nvidia to shift traditional datacenters worth trillions of dollars to accelerated computing, and establish a new type of datacenter - AI factories, to produce a new commodity: artificial intelligence," CEO Jensen Huang stated in the first quarter financial report. "We are ready to embrace the next wave of growth."
HSBC analysts raised Nvidia's stock target price before the financial report release
On August 21, HSBC analyst Frank Lee raised Nvidia's target price from $135 to $145 and maintained a buy rating.
The analyst believes that Nvidia will continue to maintain growth due to the sustained strong demand for AI GPUs, and that any product roadmap delays will have limited impact on earnings.
"The trend of large-scale capital expenditure on AI in 2025 remains intact, and the potential demand for AI still exists," the analyst said.
HSBC predicts that Nvidia's sales in the second quarter will reach $30 billion, exceeding the company's guidance and the market's general expectations of $28 billion and $28.6 billion, respectively.
Editor/Somer