Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating and raised the price target from $ 500 to $ 600.
KeyBanc Capital Markets analyst Mitch Steves maintains an Outperform rating and raises the price target from $ 461 to $ 528.
Raymond James analyst Chris Caso reiterated an Outperform rating and increased the price target from $ 500 to $ 550.
Needham analyst Rajvindra Gill maintained a Buy rating and raised the price target from $ 400 to $ 600.
Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating and increased the price target from $ 400 to $ 520.
KeyBanc Capital Markets analyst Weston Twigg maintained a Sector Weight rating.
BMO Capital Markets analyst Ambrish Srivastava has an Outperform rating and $ 565 price target.
The FCF margins are best-in-class not only for large-cap semiconductor companies, but for the entire tech sector, the analyst said.
Arya continues to see secular momentum, with new product cycles and an expected recovery in cyclical vehicles and professional visualization in calendar year 2021.
“Bigger picture, we believe NVDA has an unstoppable lead for hardware / software / developer in some of the largest and fastest growing semis / tech markets (AI, gaming, autonomous),” the analyst said.
This could potentially drive sales growth up to 20% -plus and EPS growth to 25% -plus to go to calendar year 2024 to $ 22 per share, and Nvidia to be pre-distinguished for the distinction of the first $ 500 billion billion chip cap manufacturer at current multiples, according to BofA.
Nvidia suggested strong visibility given a potential best gaming cycle driven by new product launches and the mainstreaming of ray tracing in games, the analyst said.
The Ampere A100 computing GPU could likely trigger a disruptive change in the architecture of data centers, he said.
With most cloudloads benefiting from acceleration, Ampere is likely to see significant adoption, the analyst said.
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“We are seeing a multi-year data center GPU computing cycle for Nvidia accelerated by Mellanox’s network / substance control, with increasing gross margin as more of the business model sees increasing and recurring software sales.”
The only quarter-on-quarter growth figures Nvidia indicates for the Ampere launch suggest a healthier demand than expected, the first quarter after the Volta launch saw a noticeable break in growth, the analyst said.
The games segment should see a product update on Sept. 1, resulting in product launch costs, which may explain the soft guidance of gross margin, he said.
“Overall, we would be buyers of weakness if the stock drops significantly.”
The appreciation of the stock requires some optimism, the analyst said.
Raymond James’ revised 2022 EPS estimate is $ 10, which implies a 48x multiple, he said.
The higher EPS estimates are based on an assumption of 20% year-over-year data center growth, consistent with hyperscale cap spending, Caso said.
“In the long run, NVDA is likely to grow at a multiple of cloud quality, because AI training is growing faster than general data center, they are penetrating deeper into inferencing and benefiting from emerging ASPs.”
Growth seems to be accelerating with the new product cycle, the analyst said, adding that as long as that continues, Raymond James would stay with the stock.
Nvidia is “the only perpetual growth story in semis,” with a full-stack computing solution designed to support the AI revolution that is spreading across the global economy, the analyst said.
The new A100 data center GPU continues to perform well, leading most of the data center’s growth outside of the Mellanox acquisition, the analyst said.
Nvidia maintained a Bullish view in the second half, despite concerns about digestion of data centers, he said.
“We are raising our estimates sharply, and we remain constructive about NVDA’s long-term opportunity; however, we remain sector weight due to high valuation.”
Latest ratings for NVDA
| Date | Flink | Action | Fan | No. |
|---|---|---|---|---|
| Aug 2020 | Susquehanna | Maintains | Positive | |
| Aug 2020 | Jefferies | Maintains | to buy | |
| Aug 2020 | Wells Fargo | Maintains | Overweight |
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