Nvidia (NVDA) - Get Report should deliver a solid third-quarter earnings beat next week, according to a Deutsche Bank analyst, who raised his share price target on the computer-graphics-chip company to $500 from $450.
Shares of the Santa Clara, Calif., company at last check were up 0.3% to $538.15. They closed Wednesday trading up 5.1% at $536.72.
"We expect NVDA to deliver a solid beat and model [the fiscal fourth quarter] above Street, driven by an expectation of an extra week of revenue that may not be fully accounted for in Street estimates," said analyst Ross Seymore, who maintains a hold rating on the stock.
The analyst said the company's "quality of growth in the near-term (gaming and data center) are unparalleled."
Overall, he wrote in a note to clients "we remain impressed with NVDA's ability to address a wide array of rapidly growing sectors (AI, data center, gaming, ADAS/AV etc.) and expect optimism on these vectors to remain high in fiscal 2021."
However, Seymore noted, while Nvidia "continues to hit on all cylinders in an otherwise challenging macro environment, we believe much of this goodness is reflected in its share price."
Last month, in its third-quarter report, Intel said it saw weakness in its data-centric businesses serving governments and enterprises.
Seymore also said "the gaming upside may be capped by supply constraints."
"We model NVDA to guide revenues to $4.71 billion, above the Street of $4.41 billion," he said.
Nvidia is scheduled to report third-quarter results on Nov. 18.