TECH - Nvidia Forecast To Excel In Data Center Gaming And Why Analysts Predict Strong Supply Improvement | Benzinga
Oppenheimer analyst Rick Schafer reiterated an Outperform rating on Nvidia Corp (NASDAQ: NVDA) with a $650 target. The analyst expected upside results and outlook as supply gradually improve against his estimated 20% "excess" demand.
Advanced packaging (CoWoS) is pinch-point and likely gates upside magnitude, the analyst noted, adding that supply constraints should ease sequentially through next year as Taiwan Semiconductor Mfg. Co. Ltd.(NYSE: TSM) CoWoS capacity increases by 20% shortly and at least doubles exiting 2024.
The U.S. government tightened China export rules on Oct. 17, restricting sale of A100, H100, A800, H800, L40, L40S and RTX 4090.
Management announced HGX20, L2 PCIe and L20 PCIe to comply with restrictions.
Schafer noted new SKUs may still be subject to government approval and licensing. China accounts for ~20% of DC sales.
The gross margin will likely be up 135bps to 72.5% in ...