Nvidia exceeds expectations in the third quarter - analysts see further growth potential

Nvidia exceeds expectations in the third quarter - analysts see further growth potential

How www.wallstreet-online.de reported,

Shortly

Nvidia exceeds expectations in the third quarter. Restrictions on chip exports to China could worsen. Analysts rate the shares positively and see further growth potential.

The quarterly report of the technology group Nvidia exceeded expectations, which analysts see as positive. However, there are concerns that restrictions on chip exports to China, one of Nvidia's biggest markets, will worsen rather than improve. The US government wants to prevent highly specialized equipment from reaching China if it could be used for military purposes.

Various analysts have rated Nvidia shares positively and see further growth potential. Benchmark's Cody Acree rates the stock a Buy with a $625 price target. Analysts at KeyBanc are similarly optimistic, maintaining their “Overweight” rating for Nvidia with a price target of $650. Bernstein also raised the price target from $675 to $700 and maintained the “outperform” rating. Piper Sandler and Itau BBA have also raised their price targets and are maintaining their positive ratings.

Despite the positive reviews and the outperformed quarterly report, Nvidia shares fell around 2.5 percent after the report was published. The average analyst price target is around $650.60, implying an upside potential of 33.5 percent from Wednesday's closing price.

It remains to be seen how the restrictions on chip exports to China will develop and whether Nvidia continues to offer growth potential despite the share price decline following publication of the report.