Nvidia (NASDAQ: NVDA) has been the flag bearer for the artificial intelligence (AI) investing revolution since shortly after OpenAI's ChatGPT launched in November 2022. However, attention on the stock has waned in recent weeks as investors focused more on the presidential election results. Cyclical stocks like financials, energy, and even tech potentially stand to benefit from policy changes likely under a Trump administration, as well as general hopes for lower tax rates and deregulation.
However, attention is likely to return to Nvidia when it reports third-quarter earnings on Wednesday, Nov. 20. The company is already getting some favorable attention from analysts ahead of the report.
Piper Sandler calls Nvidia a top buy
Ahead of Nvidia's earnings report, Piper Sandler raised its price target on Nvidia from $140 to $175, maintaining its overweight rating on the stock and calling the stock its top large-cap pick, according to reports. That target implies a 19% gain for the stock over the next 12 months.
Like much of the market, Piper Sandler's analyst seems to be responding to reports of strong demand for its new Blackwell platform. The analyst also predicted that the total addressable market for AI accelerators will rise to $70 billion next year, and expects revenue to top the analyst consensus estimate by $1.3 billion in Q3.
Is Nvidia a buy?
Nvidia is now the most valuable company in the world at a market cap of $3.6 billion, largely because it remains the single best way to bet on the AI revolution.
The company dominates the market for data center GPUs, and while competition from peers like Intel and Advanced Micro Devices has arrived, Nvidia seems to be extending its lead with the Blackwell platform. It has several other advantages, including its CUDA software library.
High expectations are now baked into its earnings report, and the stock fell on its last report despite strong results. Investors should expect another impressive set of numbers next week. Regardless of how the stock moves, Nvidia still looks like a smart long-term bet.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool recommends the following options: short November 2024 $24 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
