Summit Insights Upgrades NVIDIA (NVDA) to Buy After Earnings Beat, Says Key Risks Are Priced In

We recently published a list of 12 AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks on latest news and ratings.

On May 29, Summit Insights upgraded NVIDIA Corporation (NASDAQ:NVDA) to “Buy” from Hold following its Q1 results and guidance. NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

The AI-darling reported revenue of $44.1 billion for the quarter, surpassing analyst estimates of $43.3 billion, as per data compiled by Bloomberg. The company reported $26 billion in the same period last year.

Meanwhile, adjusted earnings per share, excluding the charge for the H20 chips, were $0.96. EPS topped estimates of $0.93 and exceeded earnings per share of $0.61 from last year.

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

The company reported that it anticipates an estimated $45 billion in sales in the current quarter, as compared to LSEG’s estimates of $45.9 billion of sales in the July quarter. It also said its guidance would have been about $8 billion higher except for lost sales from the recent export restriction on its H20 chips.

Summit Insights upgraded Nvidia following the earnings report. The analyst told investors in a research note that major overhangs, such as the risk of double-ordering on its Hopper generation AI GPU and the risk of China export controls, are now priced into the stock.

The firm also believes that the data center capital spending for the training market will remain robust and benefit Nvidia AI GPU and data center networking businesses.

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $160 implies an 18% upside, however, the Street-high target of $235 implies an upside of 75%.

Overall, NVDA ranks 2nd on our list of AI stocks on latest news and ratings. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.