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Wedbush analyst Matt Bryson reiterated Nvidia Corp (NASDAQ:NVDA) with an Outperform rating and a $1,000 price target.
Bryson’s conversations with memory vendors have suggested robust demand for both HBM and high-capacity SSDs, which are associated largely with enterprise AI implementations and cloud SSD demand.
Similarly, the analyst received positive feedback regarding the demand for inputs directly supporting Nvidia or its customers.
Also Read: Nvidia Tops Hedge Fund Buys as Interest in AI Stocks Fuel Market Gains: Bloomberg
His work around numerous areas of supply supporting both Nvidia and AI servers suggests production capacity dedicated to Nvidia parts is broadly set to grow by over 100% from the fourth quarter of 2023 to the fourth quarter of 2024.
Hyperscale data center operators all noted either capex budgets are lifting in the current quarter, are being increased meaningfully for the fiscal year, or both, with all four of the large U.S. operators pointing to increased spend on AI as being one of the primary factors driving growth, he noted.
With hyperscale representing nearly 2/3 of Nvidia demand, Bryson noted increased spending intentions as a significant driver for Nvidia.
He added that press reports have suggested better Chinese demand for Nvidia’s H20.
Bryson projected first-quarter revenue and EPS of $24.01 billion and $5.41, respectively.
Piper Sandler analyst Harsh V. Kumar maintained an Overweight rating on Nvidia with a price target of $1,050.
The analyst continues to see strong demand for Nvidia’s data center products and feels the company is set up for another beat and raise quarter.
He said demand for Hopper GPUs remains strong, and supply is still working to catch up to demand as the product is still on allocation.
Kumar’s checks indicate that demand for the Blackwell GPU series is also set to be robust across Nvidia’s data center customer base.
In terms of results, his bull case shows that total revenues have the potential to beat current expectations by $1.5 billion – $2.0 billion for April, with a similar magnitude beat for July. In this scenario, he expected the stock to be flat to slightly up due to elevated investor expectations. Overall, Nvidia remains his top large-cap pick, and he remains bullish about the Blackwell series providing meaningful acceleration to revenues in the long term.
Kumar projected first-quarter revenue and EPS of $24.01 billion and $5.41, respectively.
Citi analyst Atif Malik modeled in-line April quarter total and data center sales of $24 billion and $21 billion and believes buy-side total and data center sales are higher ~$26 billion and $23 billion.
For the July quarter, the analyst modeled total sales of $27.5 billion versus Street’s Street’s $26.5 billion, with a buy-side of ~$28 billion.
The analyst expects smaller beats compared to the prior few quarters on larger numbers, shorter H100 lead times, and gross margin normalization before GB200 volume ramps in the first half of 2025.
Going into earnings, he noted that investors are focused on the GB200 ramp/pipeline, a potential air pocket in AI demand in the second half of 2024, B200’s impact on long-term gross margins, power constraints on AI data center rollouts, and sovereign AI and China H20 demand.
Price Action: NVDA shares traded higher by 0.32% at $949.30 at last check Thursday.
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Posted In: NVDA
