Evercore Analyst: "NVIDIA is possibly the most important technology company today"

• Evercore analyst remains bullish on NVIDIA after GTC
• Autonomous driving offers great opportunities for the semiconductor specialist
• NVIDIA Reports Record Q4 and FY2022 Results

The most recent GTC took place in March. Evercore ISI analyst CJ Muse is bullish for the chip and processor specialist after NVIDIA’s “developer conference for the AI ​​age”, as she calls the company itself.

NVIDIA GTC 2022

Muse explained, as Yahoo Finance reports, in a statement in late March that NVIDIA is “expanding its portfolio and deepening its expertise in DPUs and CPUs, in addition to providing best-in-class hardware acceleration solutions with its GPUs – along with other areas such as connectivity and connections, to put all the pieces together.” To ensure these complex solutions run seamlessly, NVIDIA continues to be “pioneering software at both the fundamental and application-specific levels – which is key to the company’s expansion into the TAM [total addressable market] and to the general democratization of AI,” Muse said. Events like the GTC, he said, reinforced those points as various customers and ecosystem partners highlighted the advances they are driving together with NVDA and roadmaps for continued growth over the next decade or release longer, according to Muse.

NVIDIA strengthens itself in the field of autonomous driving

One area where NVIDIA is strengthening — which Evercore analyst Muse also sees as a big opportunity — is autonomous vehicles (AV). At GTC, NVIDIA CEO Jensen Huang put the company’s automotive engineering order pipeline at $11 billion over the next six years. “The auto industry is definitely going to be our next multi-billion dollar business,” Huang told Julie Hyman and Dan Howley in an interview with Yahoo Finance Presents. “The $11 billion is going to be a pretty significant deal for us in auto alone. But if you look at the whole of AV, I think that’s going to be one of the biggest AI industries in the world.” During the conference, NVIDIA valued the potential market for auto-related software, hardware, and data center services at $300 billion, reports Yahoo Finance.

According to Muse, “Advancements in vehicle technologies, data center capabilities, connectivity and AI/simulation (Omniverse) are enabling […] today, a transformation in the automotive industry leading to an estimated $2 trillion opportunity over the coming decade from the monetization of auto services (largely led by autonomous driving and/or mobility-as-a-service).”

Record results in Q4 and full year

NVIDIA was also able to convince with its latest figures. The company achieved record results: In the fourth fiscal quarter ended January, NVIDIA was able to increase its sales by 53 percent to approximately 7.6 billion US dollars, while profits of 3 billion US dollars more than doubled compared to the same quarter last year. For the full year, sales rose 61 percent year-on-year to $26.9 billion. Sales in the areas of gaming, data centers and professional visualization also rose to new records on a quarterly basis. NVIDIA posted a record Q4 EPS, up 103% to $1.18, up from $3.85 (+123%) for the fiscal year.

“We are seeing exceptional demand for NVIDIA computing platforms,” ​​Jensen Huang is quoted as saying in the press release accompanying the figures. “NVIDIA is driving advances in AI, digital biology, climate science, gaming, creative design, autonomous vehicles and robotics – some of the most influential areas today,” said the NVIDIA CEO.

NVIDIA today’s most important technology company?

And so analyst CJ Muse is also very confident about NVIDIA. “NVIDIA is possibly the most important technology company today,” the analyst said in the release, reiterating his outperform rating for NVIDIA with a price target of $375, according to Yahoo Finance.

NVIDIA stock is currently trading at $267.12 on NASDAQ (as of April 1, 2022 closing price). The analyst still sees upside potential of around 40 percent for the semiconductor specialist. Year-to-date, NVIDIA’s trend is down so far (-9.18%).

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