Nvidia shares extended a post-earnings selloff, falling about 2% to $175.64 on Friday after an initial rally reversed and dragging down peers AMD and Broadcom by roughly 3%, as post-earnings volatility and macro/credit concerns weighed on the chip sector. Analysts nonetheless reiterated Buy ratings and lifted price targets—Truist to $255, UBS and Morgan Stanley to about $235, and Goldman to $250—pointing to accelerating revenue, multi-year utilization of older A100 chips as evidence against an AI hardware bubble, and large unmet AI demand that supports upside and higher long-term EPS forecasts. Complementing the bullish analyst narrative, Nvidia expanded its ecosystem with Foxconn’s announcement of a $1.4bn, 27‑MW GB300-powered supercomputing centre in Taiwan due H1 2026, signaling growing commercialisation and capacity for Nvidia’s next‑gen GPUs despite near‑term market rotation.
Nvidia shares resumed a post-earnings selloff, trading down about 2% to $175.64 on Friday after an initial rally reversed and a 3.2% decline tied to the earnings report, a move that pushed peers AMD and Broadcom roughly 3% lower and amplified sector volatility. The pullback reflects near-term market concerns—debate over an AI bubble, tighter customer cash flows and rising debt burdens—overriding the company-specific beat. Analysts largely remained constructive and raised targets: Truist lifted its target to $255 from $228, UBS’s Timothy Arcuri maintained a $235 target while forecasting roughly $11 EPS in 2027 versus the Street’s ~$8.50, Morgan Stanley raised its target to $235 from $220, and Goldman to $250 from $240. Analysts pointed to Nvidia’s accelerating revenue trajectory (quarterly revenues up sequentially by $10 billion and beating guidance by $3 billion) and expectations for another ~$8 billion in incremental revenue in January as the primary drivers of upside. Concrete ecosystem developments support the bullish thesis: Foxconn announced a $1.4 billion, 27-megawatt GB300-powered supercomputing centre due H1 2026 and Nvidia disclosed six-year-old A100 chips remain at full utilization, which analysts cite as evidence against classic bubble ordering. Investors should weigh these durable demand signals against continued post-earnings volatility and macro/credit sensitivity in the semiconductor patch.
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Overall Sentiment
mildly positive
Sentiment Score
0.28
Ticker Sentiment
