TECH - Nvidia: 'AI Demand Pull' To Drive 2024 Capex Analysts See 'Higher Software Monetization' In AI | Benzinga
Analysts attended Nvidia Corp’s (NASDAQ:NVDA) GTC conference on March 19, which delivered multiple product and partnership announcements.
Management outlined initiatives across the company’s hardware and software offerings, including announcing its newest GPU architecture, Blackwell, which succeeds the Hopper architecture.
Longer-term Nvidia sees Generative AI (GenAI) as a ~$100 trillion market, greenfield driving ~$250 billion annually and a brownfield demand of an additional ~$250 billion yearly.
Mizuho analyst Vijay Rakesh reiterated a Buy rating on Nvidia with a price target of $1,000.
The analyst flagged Nvidia pricing B100 at $30-40K, only ~25-30% higher than the current H100 at ~25K, while delivering 3-5x performance boost could be a challenge for Advanced Micro Devices, Inc (NASDAQ:AMD) with aggressive pricing.
He noted Nvidia driving leadership with hardware excellence and software integration driving AI dominance, expecting AI industry revenues of over $400 billion by 2027E.
Rakesh projects first-quarter revenue and EPS of $24.01 billion and $5.52.
BofA analyst Vivek Arya reaffirmed a Buy rating on Nvidia with a price target of $1,100.
Arya noted that the session focused more on Nvidia expanding TAM and margin outlooks and deepening AI’s competitive moat.
The analyst flagged $250 billion annually in accelerated computing TAM representing just the upgrade portion of traditional data centers into accelerated data centers, with data center operators likely ...