Wall Street research firms cheered Nvidia’s latest quarterly report, which included a better-than-expected outlook, by raising their estimates for the chip maker. Analysts were already optimistic Nvidia was well positioned for the AI chip boom ahead of Wednesday’s earnings announcement. But the company said Wednesday that it expects revenue of about $11 billion, or 2%, in the fiscal second quarter of 2024, up more than 50% from Wall Street’s previous estimate of $7.15 billion. Shares rose nearly 25% in premarket trading. Nvidia shares were up 109% year-to-date heading into Thursday’s session. “The computing industry is going through two simultaneous transitions — accelerated computing and generative AI,” CEO Jensen Huang said in a statement Wednesday. Huang added that the company is “significantly increasing” its data center product offerings to meet “growing demand.” Big price target JPMorgan on Wednesday set its price target at $500, double its previous estimate and among the highest among major banks. Analyst Harlan Sur said this is the “first massive wave of demand for generative artificial intelligence”, with further gains to follow. He reiterated his overweight rating on the stock. “Generative AI and large language/transformer models are driving accelerating demand for Nvidia’s accelerated compute/networking platforms and software solutions. The team has positioned itself as a comprehensive solutions provider with its portfolio of compute/network silicon, software/managed cloud services. , hardware systems and a full-stack ecosystem for training/deploying complex models,” Sur wrote Thursday. Evercore also raised its price target to $500, from $320, based on the results. The new price target implies an additional 30% upside from where the stock was trading at 6:40 a.m. ET Thursday. “What can we say other than WOW!…We’ve simply never seen a beat like this,” analyst CJ Muse wrote in a note Wednesday. He said Nvidia has a long way to go and reiterated that the company is one of Evercore’s top companies.The company maintained its outperform rating on the stock.Barclays also raised its price target to $500, an 82% increase from its previous benchmark. Analyst Blayne Curtis kept his overweight rating on the stock. “The market is evolving rapidly and NVDA seems to be the only solution ready to power this wave of LLMs,” said Curtis. “NVDA was always expected to see a jump in its data center (DC) business, but this was at least a quarter earlier and it was extraordinary.” ‘AI feeding frenzy’ UBS said its also remains bullish on Nvidia amid an “AI feeding frenzy.” “From a valuation perspective, our EPS has grown much more than the stock, so we believe it’s actually cheaper now than it was on the earnings side, which opens up more room to operate,” analyst Timothy Arcuri wrote Wednesday. Arcuri raised its price target to $475 from $315 and maintained a buy rating on the stock. Bank of America’s Vivek Arya also reiterated his buy rating on the stock and raised his price target to $450 from $340. The analyst said the AI leader is on track for “1 trillion and beyond,” referring to its market cap, and also noted that the current quarter’s outlook increase is the largest he has seen in coverage. Citi also maintained its buy rating and raised its price target to $420 from $363. Morgan Stanley and Wells Fargo also have Overweight ratings and $450 price targets on the stock. Elsewhere, Baird upgraded the stock to outperform and raised his price target to $475 from $300. Analyst Tristan Gerra noted that there is “no meaningful near-term competitive threat” for Nvidia, adding: “Google’s next-generation TPU could be competitive, but would probably not expand the existing footprint, while other vertical integration initiatives are lagging behind.” We don’t see anyone who has a complete solution. remotely match Nvidia’s capabilities.” Deutsche Bank, however, was less enthusiastic than others. The bank maintained its rating on the stock, saying it expects a more attractive entry point after year-over-year growth and the current appreciation of the premium. It raised its price target to $390, which was just 1 .5% higher than where the stock was trading Thursday morning. To be sure, analyst Ross Seymour was also impressed by the chipmaker’s earnings. “Just wow,” Seymore said. F2Q fell to stunning >50% quarter-over-quarter revenue growth, delivering the biggest forward-looking ‘beat’ we can remember,” he said Wednesday. Note. NVDA Mountain 1D Nvidia shares rise — CNBC’s Michael Bloom contributed to this report.
Analysts look to raise price targets on Nvidia after super earnings. JPMorgan goes for $500
