Analysts Are Cautious Post Nvidia's Q2 Results

Several analysts raised price targets on NVIDIA Corp NVDA after beating earnings in Q2.

Analyst Reactions: Credit Suisse analyst John Pitzer raised the price target on NVIDIA's to $225 from $175, implying an 18.2% upside, and affirmed an Outperform rating. 

While the stock is not cheap, Pitzer sees the opportunity to grow into the multiple driven by his Accelerating Compute TAM thesis and the nearly $8 billion in Auto design wins ramping from 2024-2027.

Piper Sandler analyst Harsh Kumar raised the price target to $225 from $172.50 and maintained an Overweight. 

Kumar warned about the gaming weakness in the October quarter and the future.

Barclays analyst Blayne Curtis raised the price target to $225 from $205 and reiterated an Overweight.

The Q2 beat and Q3 guidance were not as significant versus prior quarters. However, Curtis notes that the crypto mining processor was mainly out of the model under the surface, and the data center outlook was quite strong. 

Jefferies analyst Mark Lipacis raised the price target to $223 from $214, signifying a 17.1% upside, and reiterated a Buy. 

Lipacis expects Nvidia's ecosystem moat and increasing software revenues to yield additional upside surprises.

KeyBanc analyst John Vinh raised the price target to $245 from $238, implying a 28.7% upside, and maintained an Overweight. 

Intense data center and pro visualization revenues drove Nvidia's Q2 beat and guidance raise, Vinh observes.

Susquehanna analyst Christopher Rolland raised the price target to $220 from $180, signifying a 15.5% upside, and reiterated a Positive. 

Rolland notes that almost every significant market segment with Data Center, Gaming, and Pro Viz hitting new records drove the Q2 beat and guidance.

Mizuho analyst Vijay Rakesh raised the price target to $235 from $225, signifying a 23.4% upside, and affirmed a Buy. 

Robust data center offset crypto weakness in the July quarter, Rakesh notes. Nvidia continues to drive data center and artificial intelligence leadership, positioning it well into 2022, believes Rakesh.

Deutsche Bank analyst Ross Seymore raised the price target to $185 from $150, implying a 2.8% downside, and kept a Hold. 

The company delivered a solid report and guidance, albeit with the beat/raise smaller in magnitude than past quarters, Seymore states. He maintained a Hold rating due to valuation.

Summit Insights analyst Kinngai Chan downgraded Nvidia to Sell from Hold post Q2 results. 

The October quarter outlook includes significant channel refill in its gaming market, masking the considerable decline in cryptocurrency-related sales, Chan notes. 

Chan's checks suggest Nvidia's exposure to the crypto-mining market exceeded $1 billion and could be close to the $1.5 billion range in the July quarter. He believes there could be a $0.5 billion - $1 billion downside in its gaming sales in the January quarter.

Price Action: NVDA shares traded higher by 3.61% at $197.18 in the market session on the last check Thursday.

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