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first_img Goldman Sachs: Nvidia's impressive earnings report may struggle to boost stock prices

According to the Financial Associated Press, Nvidia will announce its Q2 2027 financial report after the US stock market closes on August 26. Goldman Sachs expects strong performance with potential upward revisions in guidance, but notes that the stock price has already surged since August, with an increase of over 12% in the past two weeks, suggesting that the good news may have already been priced in, making it difficult for excellent performance to boost the stock price. Goldman Sachs' EPS forecasts for Nvidia in Q2 and Q3 are 6% and 12% higher than Wall Street's consensus expectations, respectively, with a target price of $285, which is still slightly below the market average.Goldman Sachs believes there is room for revaluation in the valuation, provided that the profitability of large-scale cloud vendors improves to support capital expenditures, Nvidia maintains caution on its customer financing platform to alleviate concerns about supplier circular financing, and continues to advance large-scale buybacks and dividends. Investors will focus on details of the customer financing platform in the earnings call, progress on the Vera Rubin platform, gross margins and raw material costs, CPU demand driven by AI agents, and the competitive landscape in the industry.Goldman Sachs points out that while GPU demand is strong, there is still a risk of a pullback, and the difficulty of "exceeding expectations and raising guidance" increases each quarter, raising doubts about whether cloud vendors can continue to ramp up capital expenditures. Earlier this month, Nvidia, in collaboration with Apollo, BlackRock, Blackstone, Goldman Sachs, KKR, and others, established a financing platform for AI computing infrastructure, aiming to leverage over $500 billion in third-party capital; concerns about circular financing are rising in the market, and the company needs to release more substantial new information, or else the stock price is more likely to decline rather than surge after the earnings report.

first_img The price of semiconductor silicon wafers has increased by about 10% for the first time in over three years, benefiting companies like GlobalWafers and other Taiwanese manufacturers

According to the Economic Daily, semiconductor silicon wafers have seen a significant price increase for the first time since the COVID-19 pandemic, covering the full range of specifications including 6-inch, 8-inch, and 12-inch, with an increase starting at 10%. Industry insiders believe this is the first price adjustment in over three years, and major Taiwanese silicon wafer suppliers such as GlobalWafers, TSMC, and Hejian are expected to see improvements in revenue and profitability.GlobalWafers stated that recent demand in some end markets has gradually improved, inventory adjustments in the supply chain are healthier than in the past, and market signals are more positive than last year, but prices still depend on the product, specifications, and customer situations. TSMC mentioned that under cost pressures and demand support, they have begun communicating price adjustments with customers, and operations in the second half of the year are expected to outperform the first half. Hejian indicated that they are actively negotiating price adjustments with customers and continuing to promote advanced packaging and related products.Industry analysis suggests that this round of price increases mainly reflects the rebound in chip demand driven by AI, with increased usage in advanced and mature processes, allowing the upstream silicon wafer industry to gradually feel the recovery. Currently, the negotiation progress varies among factories and customers, with some 12-inch polished wafers already subject to new quotes with double-digit percentage increases, and discussions for 8-inch and 6-inch products are also moving in a similar upward direction.
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