BofA analyst Vivek Arya reiterated a Buy rating on Nvidia Corp (NASDAQ:NVDA), boosting the price target to $800 from $700.
The chip designer will report its quarterly earnings after closing on February 21.
The analyst will seek for a notable but more measured 3% – 5% or $0.5 billion – $1 billion upside to both the reported fourth quarter (consensus $20 billion) and guided first quarter (consensus $21.4 billion) mainly due to incremental supply gains offset by China restrictions and some transition effects before the B100 accelerator launch planned for the second half of 2024.
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While a 3% – 5% beat would pale versus the 10% and 22% beat and raise of prior quarters and perhaps disappoint some bulls, the more measured pace will also be seen as creating more fertile ground for continued growth in the calendar year 2025 and beyond.
Stepping above quarterly EPS noise, Arya will focus on Nvidia’s flagship GPU Tech Conference (GTC) planned for March 18 – March 20, where the company will likely showcase its pipeline and perhaps update the prior $250 billion annual AI accelerator TAM forecast.
Arya’s top pick, Nvidia, is backed by the potential for higher ...