Nvidia earnings were "outstanding," but were released during "an extremely jittery stock market," says James Demmert, chief investment officer at Main Street Research. As such, he is taking the chipmaker's relatively modest post-earnings move with "a grain of salt."
Indeed, NVDA is set to open Thursday with a less than 2% gain – a far cry from the massive post-earnings moves the market is accustomed to.
According to Market Chameleon, Nvidia has averaged a 5.8% gain in the session immediately following its past 12 earnings releases (not including last night's print).
Demmert remains bullish on Nvidia and says that when the stock's price-to-earnings ratio has hovered near 31 – as it is now – this has historically preceded big pops in the share price. "We have a price target of $180 on the shares for the end of 2025," he adds, which implies expected upside of 44% to NVDA's February 26 close at $131.28.
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