Nvidia Is ‘Massively Underestimated,’ Says Dan Ives, Ahead Of Q4 Earnings

• According to Ives, the most important aspect to watch out for in Nvidia’s results is fiscal 2027 guidance on growth and margin figures.
• Ives said that commentary on demand for Nvidia’s chips, including H200 demand in China, and demand for its Blackwell and Rubin chips, will be important.
• He also called Nvidia chips the new gold and the new oil of the world.

Nvidia Corp. (NVDA) is massively underestimated by Wall Street analysts, said Dan Ives, managing director at Wedbush Securities, on Wednesday, ahead of the chipmaker’s widely-anticipated fourth-quarter (Q4) results.

In an interview with CNBC, Ives said that given the demand for artificial intelligence, and the position of the company’s chips at the center of the AI revolution, Nvidia’s earnings are “pivotal” for the technology sector.

“When you look at the timing of everything, this continues to be massively underestimated,” Ives said, adding that “there’s one chip in the world fueling the AI revolution” while the rest of the world still plays catch up.

Ives added that he is expecting “gold medal performance” from the company.

Shares of NVDA were trading about 2% higher at the time of writing.

What To Watch Out For In Earnings

According to Ives, the most important aspect to watch out for in Nvidia’s Q4 results is the fiscal 2027 guidance on growth and margin figures. He estimated that strong guidance could push the company’s stock price up to $250, or even higher.

Ives said that commentary on demand for Nvidia’s chips, including H200 demand in China, and demand for its Blackwell and Rubin chips, will be “key” for the company.

Talking about the massive sell-off in the software sector following Anthropic’s announcement of multiple AI tools, Ives said that Nvidia’s results would also work to ease some of that disconnection in the market. “It’s an AI ghost trade,” he said, adding that Nvidia’s report would be “the first step to defeating the ghost trade.”

Earlier, Wedbush had released a note that said the firm estimated that for every $1 spent on Nvidia, there would be an $8-$10 multiplier across the rest of the ecosystem. Wedbush has a price target of $230 and an ‘Outperform’ rating on NVDA shares.

“The new gold, the new oil in this world is Nvidia chips. They’re years ahead of competition,” Ives said.

Street Expectations

For Q4, Wall Street analysts expect Nvidia to post revenues of $65.62 billion, a 67% increase year-on-year, according to data from Fiscal.ai.

Meanwhile, the street expects an earnings per share (EPS) of $1.52 for the quarter, up from $0.89 posted in the same period last year.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around NVDA shares have jumped to ‘bullish’ from ‘bearish’ territory over the past 24 hours, while message volumes have stayed at ‘high’ levels.

The stock was also the top-trending on Stocktwits at the time of writing.

Shares of NVDA have risen more than 55% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also Read: Why Did ODD Shares Tumble More Than 50% Today?

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