Stay-at-home trends, a rise in crypto mining, and the in-demand Ampere gaming card have joined forces to help propel expectations on the Nvidia Corp. (NVDA) Q2 results and guidance. They will be released Wednesday, May 26, after market hours. (See Nvidia stock analysis on TipRanks)

Christopher Rolland of the Susquehanna Financial Group published a report arguing that while the graphics processing unit (GPU) market was “white hot” in the past quarter, it will inevitably have to cool off. The powerful momentum that brought GPU demand up 75% year-over-year to an all-time high, will surely slow down following the April quarter.

Rolland maintained a Buy rating on the stock, and assigned a price target of $700. This represents 11.84% potential upside.

Additionally, Rolland noted that supply side difficulties with the popular Nintendo Switch hardware and Ampere gaming cards would put a ceiling on NVDIA’s possible upside. Global semiconductor shortages are no doubt a concern, but Rolland believes Nvidia is poised to weather through it because it manufactures with both TSMC and Samsung.

TipRanks currently ranks Rolland as a Top Analyst with a five-star rating.

NVDA maintains a Strong Buy according to TipRanks' analyst rating consensus, based on 1 Hold and 16 Buy ratings. The stock currently has an average analyst price target of $705, representing a 12.64% potential upside. NVDA closed Tuesday at a price of $625.91 per share.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.