Nvidia Gets A New Street-High Price Target After Blowout Quarter

Nvidia Corp. NVDA received a Street-high price target close on the heels of its first-quarter earnings, although the number could be bested as more sell-side analysts weigh in on the company's speculator results.

The Nvidia Analyst: KeyBanc Capital Markets analyst John Vinh reiterated an Overweight rating on Nvidia shares and upped his price target from $375 to $500. Incidentally, just ahead of the quarterly earnings, the analyst bumped up the same from $320 to $375.

The new price target suggests the stock offers scope for about 64% upside.

The Nvidia Thesis: The first-quarter outperformance was driven by strengthening demand in generative AI for both its Hopper and Ampere GPUs across cloud service providers, consumer internet companies and enterprises, analyst Vinh said in a note. This helped drive data center revenue to a record high, he noted.

See Also: Nvidia Nears Trillion-Dollar Club: What’s The Thursday Target For Market Cap Triumph?

Nvidia's second-quarter guidance suggests data center revenue will double in the quarter, the analyst said. Visibility into the second half has improved as the company said it has secured a higher supply capacity in the second half to support robust demand, he added.

Beyond GPUs, the company expects its DPUs, Grace CPU, Grace Hopper and Mellanox networking to support data center growth, the analyst noted.

Vinh noted that first-quarter gaming revenue topped his expectations, driven by RTX-40 ramps. The company suggested that generative AI will be another driver for its gaming segment, citing its recent collaboration with Microsoft Corp. MSFT.

Price Action: In premarket trading on Thursday, Nvidia climbed 24.24% to $379.41, according to Benzinga Pro data.

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