Dan Ives Says It Was The 'Most Bullish' Call, El Erian Calls Chipmaker's Earnings A 'Macro Event': Analysts Explode With Optimism On Nvidia

Leading analysts are beaming with optimism on NVIDIA Corp. (NASDAQ:NVDA) and the broader AI trade, following the company’s strong third-quarter performance on Wednesday.

Still ‘Early Innings’ For AI

In a post on X, Wedbush Securities analyst Dan Ives described the quarter as a “Massive beat and raise,” noting that Nvidia lifted its January revenue outlook by $3 billion. He said the company’s commentary made it clear the AI boom is still in its “early innings,” calling the report a “Major validation moment from the Godfather of AI, Jensen and Nvidia.”

He called it the “Most bullish Nvidia call,” pointing to surging demand for the company’s Blackwell and upcoming Rubin chips.

See Also: Nvidia Taps Startup Menlo Micro To Fix Bottleneck In AI Chip Testing

Ives also highlighted Nvidia’s swelling “$500 billion backlog (and building quickly) into FY26,” while dismissing concerns regarding an AI bubble, citing “trillions of more demand” that are on the horizon, according to CEO Jensen Huang.

Significant Near-Term, Long-term Upside

According to Ross Gerber of Gerber Kawasaki Wealth and Investment Management, if Nvidia’s earnings touch $6.5 per share in fiscal year 2027, which marks a 42% increase from its forecasted $4.57 per share this fiscal year, the stock could touch “$292 a share” at 45 times earnings.

This marks a 56% upside for the stock from current levels, for the most valuable company in the world, that already trades at a valuation of 4.53 trillion.

Deepwater Asset Management’s Gene Munster predicts that the stock will be up by 5% to 10% over the next week, following its after-hours move, in response to the strong earnings performance.

Munster attributes this to Huang’s “over the top near and long term bullish” views, the raise in the company’s guidance for the January quarter, as well as the following fiscal year, both of which, he noted, were ahead of Wall Street consensus estimates.

He also sees the company’s margins being maintained at current levels, while volumes continue to grow and newer products get introduced as a win.

NVIDIA Earnings A ‘Macro Event’

Economist Mohamed El-Erian said that the company’s stronger-than-expected performance and outlook “reinforces the AI optimism that extends to the broader promise of productivity and growth.”

He also noted that the company’s quarterly earnings release “has arguably evolved from a corporate update to a full-blown ‘macro event,’” which he said illustrates the rapid growth of AI’s systematic importance for the markets, companies and the economy.

Stock Rallies On Strong Q3 Performance

NVIDIA released its third-quarter results on Wednesday, reporting $57.0 billion in revenue, up 62% year-over-year, and ahead of consensus estimates of $54.88 billion.

It posted a profit of $1.30 per share, which again beat analyst estimates of $1.25, marking the company’s 12th consecutive double-beat quarter.

The stock scores high on Momentum, Growth and Quality in Benzinga’s Edge Stock Rankings, with a favorable price trend in the Medium and Long terms. Click here for deeper insights into the stock, its peers and competitors.

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