Shortly before NVIDIA’s forthcoming quarterly report, a few analysts spoke up. Among most experts, the chip manufacturer is considered the AI favorite.
• High expectations for NVIDIA’s quarterly report
• Analyst: So far there is no clear competitor for NVIDIA
• NVIDIA stock has already gained over 212 percent in 2023
High expectations for quarterly report
Tonight, NVIDIA is due after-hours results for the July quarter. The expectations of the chip giant are not exactly low. Nevertheless, more and more experts are expressing confidence in the forthcoming report, including analysts from Morgan Stanley and UBS. For example, Timothy Arcuri from UBS has raised his rating for the stock significantly. And also for Morgan Stanley analyst Joseph Moore, NVIDIA remains a “top pick” with an “Overweight” rating.
“While expectations aren’t exactly low, they are a more modest improvement or increase [im Vergleich zum letzten Quartal] and talk of visibility into 2024 should keep the stock alive in our opinion,” Raymond James analyst Srini Pajjuri wrote last week, according to MarketWatch. According to him, GPU demand is outstripping supply due to the boom in AI expenses clearly.
Piper Sandler’s Harash Kumar also adjusted his price target on NVIDIA shares accordingly, while forecasting positive results for the latest quarter and a better-than-expected outlook. “Following an impressive increase in forecasts for the data center segment last quarter, we are now projecting $9.5 billion in data center revenue for the October quarter,” said Kumar. “We believe this prepares the company to [das Geschäftsjahr 2024] to finish with ~$32 billion in data center revenue, which we expect to continue growing in FY25 due to continued penetration of accelerated data centers and continued leading market share for AI applications.” Additionally, Kumar noted that NVIDIA could experience a short-term surge in demand in China as additional US government export restrictions are expected.
NVIDIA stock as AI favorite
NVIDIA is widely regarded as the AI favorite among analysts. Barclays analyst Tim Long also praised the company as “the best AI name” and as his favorite. According to him, this is how NVIDIA managed to monopolize the economy of the AI boom. In addition, no clear competitor is in sight. The analyst maintained his target price of $600 and his “Overweight” rating. “Enterprise spending has slowed and cloud investment budgets are being diverted to AI,” he explains.
Here’s how NVIDIA stock on the NASDAQ has performed so far
The price target of $600 would represent an increase of 31.38 percent at the current value of NVIDIA shares. On August 22, 2023, the chip manufacturer’s shares were last traded at $456.68 in NASDAQ trading. Since the beginning of the year, the securities have even gained 212.49 percent.
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