Nvidia Corp (NASDAQ:NVDA) will report its fourth-quarter results on February 21. Analysts offered their take on the upcoming results.
Wedbush analyst Matt Bryson maintained Nvidia with an Outperform and raised the price target from $600 to $800.
The analyst noted that Nvidia will surpass estimates again and raise future guidance. During his mid-December travels in Asia, component suppliers and Original Design Manufacturers (ODMs) indicated strong quarter trends.
They predicted further growth in the first quarter, with potential concerns about Cloud Service Providers (CSP) growth slowing in late 2024.
However, recent earnings reports from CSPs show continued momentum in AI infrastructure spending, with many large data center operators planning to increase capital expenditure in 2024, primarily for AI investments.
Bryson’s recent discussions with memory vendors revealed a continued high demand for High Bandwidth Memory (HBM), with Nvidia expected to be the largest consumer of these components in 2024.
The fourth quarter also saw significant capital raises for AI startups, which will likely benefit AI infrastructure providers either through direct purchases of AI systems or by renting AI infrastructure.
Super Micro Computer Inc (NASDAQ:SMCI) reported a significant sales acceleration during the quarter, with growth in backlog driven by AI sales.
His recent talks with other major server Original Equipment Manufacturers (OEMs) echoed similar sentiments, noting improved sales momentum ...