Financial analyst Yiannis Zourmpanos has predicted that Nvidia Corp. (NASDAQ:NVDA) could witness a significant stock rally, potentially reaching $204, following its third-quarter performance.

What Happened: Jensen Huang's company has forecasted third-quarter revenue of approximately $32.5 billion, driven by strong demand for its Hopper and Blackwell GPUs. These GPUs are expected to bolster Nvidia's data center segment, which boasts a robust 68% operating margin. The Blackwell units, priced between $30,000 and $40,000, are in high demand, with production ramping up in the fourth quarter of 2024.

Nvidia's upcoming earnings report on Nov. 20 is a crucial factor in maintaining its growth momentum.

Zourmpanos highlights that Nvidia's growth is fueled by the increasing adoption of AI and data-intensive applications, reinforcing its leadership in the industry, Seeking Alpha reported on Wednesday. However, Nvidia faces potential risks from supply chain disruptions, particularly due to its reliance on Super Micro Computer (NASDAQ:SMCI) for AI server components.

Despite these challenges, Nvidia's technical indicators and historical data suggest a bullish trend, with a 77% chance of positive returns in November. The company's strategic investments and revenue growth position it for potential long-term value appreciation.

Why It Matters: As Nvidia prepares to release its third-quarter results, analysts are closely watching the company's performance. Morgan Stanley analyst Joseph Moore anticipates a strong quarter, aligning with the Street consensus of 74 cents per share earnings on $32.937 billion in revenue. Despite being supply-constrained, Nvidia is expected to generate significant revenue from its Blackwell chips, potentially between $5 billion and $6 billion in the upcoming quarter.

Furthermore, analysts predict a potential 14% rally for Nvidia, highlighting the company's strong market position and growth prospects. This optimism is driven by Nvidia's strategic focus on AI and data-intensive applications, which continue to drive demand for its advanced GPUs.

• Trump Appoints Elon Musk And Vivek Ramaswamy To Lead 'DOGE,' Aiming to Slash Bureaucracy And $6.5 Trillion Federal Spending: 'We Will Not Go Gently'

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image via Unsplash