Checking the Average Zacks Price Target for Nvidia's Stock Before Earnings

Seeing if Nvidia (NVDA) can deliver on its lofty Q4 expectations after the closing bell today has been circulating through investors' minds. After all, high demand for its AI chips has boosted Nvidia’s stock over +200% in the last year and NVDA shares are already up +30% year to date.

The perplexity comes as NVDA shares have dipped more than -10% from their 52-week highs of $756.11 a share seen earlier in the month. Some investors may be contemplating on taking profits while others may be eying their entry point and wondering if the fall to under $700 a share is just a brief pause before Nvidia’s stock rips higher.

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Image Source: Zacks Investment Research

Price Target & Broker Recommendations

Awaiting the analysis of Nvidia’s Q4 results this evening investors may be scouring through analyst price targets. Based on the short-term price targets offered by 38 analysts, the Average Zacks Price Target of $724.19 a share currently implies 7% upside with NVDA shares down roughly -3% to around $674 a share in this morning's trading session.

Notably, 35 out of 40 brokerage firms covering Nvidia’s stock and offering data to Zacks have a strong buy rating at the moment with 2 at a buy and 3 at a hold. This gives Nvidia a very favorable ABR (average broker recommendation) of 1.20 on a scale of 1 to 5 (Strong Buy to Strong Sell).

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Image Source: Zacks Investment Research

Q4 Expectations & Earnings Estimate Revisions

Taking a last look at Nvidia’s Q4 projections before results this evening the Zacks Consensus for earnings is at $4.55 per share which would represent 417% growth from $0.88 per share in the comparative quarter. Fourth quarter sales are projected to increase 235% to $20.31 billion.

Overall, Nvidia is expected to round out its fiscal 2024 with annual earnings climbing 270% to $12.36 per share and total sales increasing 119% to $59.13 billion. More importantly, the trend of earnings estimate revisions has been positive with FY24 EPS estimates slightly up over the last 60 days while FY25 EPS estimates have risen 3%.

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Image Source: Zacks Investment Research

Final Thoughts

While investors may be on edge for Nvidia’s Q4 results the number of brokers recommending its stock is very reassuring. To that point, Nvidia’s stock currently sports a Zacks Rank #2 (Buy) attributed to rising earnings estimate revisions and a post-earnings rally wouldn’t be surprising if the chip giant can reach or exceed its lofty Q4 expectations.  

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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