Nvidia's Q4 Revenue Could Soar 72% to $38 Billion, Analysts Say

Nvidia's (NASDAQ: NVDA) fourth-quarter revenue is expected to soar 72% year-over-year (YoY) to $38 billion, according to analysts' estimates. This significant growth is driven by strong demand for the company's data center and AI products, as well as its gaming and professional visualization segments. Nvidia's Chief Financial Officer, Colette Kress, attributed the growth to the increasing demand for generative AI, which has created opportunities and broad-based global growth across the company's markets.



Analysts have been bullish on Nvidia's prospects, with Susquehanna analyst Christopher Rolland predicting that the company's four segments—auto, data center, gaming, and professional visualization—could grow at a rate at least three times that of semiconductors generally. Rolland raised his price target on Nvidia's stock to $450 from $350, citing the company's strong performance and growth potential.



Nvidia's recent gains have brought its market capitalization close to the $1 trillion mark, with the stock needing to reach $404.86 to cross this threshold. Needham analyst Rajvindra Gill has been bullish on Nvidia's prospects, noting that the company's demand is coming from various sectors, including Big Tech, internet companies, and biotech firms. Gill has a $460 price target on Nvidia shares, expecting the company to achieve that valuation over time.

However, some caution is warranted, as Nvidia's stock is trading at 47.4 times 12-month forward earnings, making it relatively expensive. The company's ability to maintain its growth momentum and live up to analysts' expectations will depend on the sustainability of AI-related demand. While Nvidia has the potential to become the world's first trillion-dollar chip stock, it remains to be seen whether it can maintain that status in the long term.