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Institutional Insights: Goldman Sachs, Nvidia Earnings
Analysts at Goldman Sachs 'reiterate a Buy rating on NVDA (also on the Conviction List)ahead of FY2Q (July) results scheduled for August 28 (post market close). While the reported delay in Blackwell (i.e. next-generationGPU architecture; could lead to some near-term volatility in fundamentals, we expect management commentary coupled with supply-chain data points over the coming weeks to lead to higher conviction as it pertains to Nvidia’s earnings power in CY2025 (note our CY2025 non-GAAP EPS [excl. SBC]estimate of $4.16 is 11% above Street consensus). Importantly, we believe customer demand across the large Cloud Service providers and enterprises is strong and Nvidia’s robust competitive position inAI/accelerated computing remains intact. From a stock perspective, we believe the set-up for NVDA is constructive with the stock trading at 42x NTM consensus EPS or a relative premium of only 46% (vs. its past 3-year median of 151%) and our updated Bull/Bear Framework indicating a favorable risk/reward balance.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!