Nvidia Set For 'Clear Beat And Raise Special' As AI Demand Surges, Says Dan Ives

Nvidia Corp. (NASDAQ:NVDA) is poised to deliver another strong earnings performance this week, according to Wedbush Securities analyst Dan Ives, as artificial intelligence demand continues to drive growth for the semiconductor giant.

What Happened: “We expect another robust performance and ‘clear beat and raise special’ this week from Nvidia that should calm the nerves of investors,” Ives wrote on X on Sunday, citing massive demand drivers from the company’s new Blackwell architecture and AI capital expenditure fueling what he called the “4th Industrial Revolution.”

The chipmaker’s fiscal fourth-quarter results, due after market close on Wednesday, are expected to show revenue growth of 72% year-over-year, with sequential growth of at least 8%. This performance would mark Nvidia’s consistent streak of beating consensus revenue estimates since before 2020.

Evercore ISI recently added Nvidia to their Tactical Outperform list, emphasizing the company’s five-to-ten-year technological lead over competitors. The firm noted Nvidia remains the top choice for major tech companies including Alphabet Inc., Amazon.com Inc., and Microsoft Corp.

The company’s robust financial position adds to investor confidence, with cash reserves up nearly 50% to $38.5 billion at the end of the third quarter, exceeding total liabilities. Despite an expected slowdown in growth rate, analysts project sustained high-double-digit growth through 2025.

Nvidia’s stock has already rebounded 20% from its late January low, with analyst consensus suggesting a potential 20% upside from mid-February levels. Tigress Financial recently reiterated this optimistic outlook, upgrading the stock to Strong Buy with a price target of $220.

Price Action: Nvidia closed at $134.40 on Friday, down 4.08%. After hours, it rose 0.45%. Year to date, it’s down 2.83%, with a 52-week range of $66.25 to $153.13, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.