Technology giant NVIDIA Corporation NVDA reported first quarter results that came in ahead of Street consensus estimates. Analysts are raising price targets after the company's blowout quarter and updated guidance.
The NVDA Analysts: Needham analyst Rajvindra Gill has a Buy rating and raises the price target from $300 to $460.
Oppenheimer analyst Rich Schafer has an Outperform rating and raises the price target from $350 to $420.
Morgan Stanley analyst Joseph Moore has an Overweight rating and raises the price target from $304 to $450.
Bernstein analyst Stacy Rasgon has an Outperform rating and raises the price target from $300 to $475.
Rosenblatt analyst Hans Mosesmann has a Buy rating and raises the price target from $320 to $600.
Bank of America analyst Vivek Arya has a Buy rating and raises the price target from $340 to $450.
Wedbush analyst Matt Bryson upgrades NVDA from Neutral to Outperform and raises the price target from $290 to $490.
Related Link: Trading Strategies For Nvidia Stock After Q1 Earnings
Needham:
Gill said Nvidia could become the first trillion-dollar semiconductor company.
“Back in late 2021, we began publishing work suggesting Nvidia would become the first semiconductor company with a trillion dollar market cap. While there was some peaks and valleys in the interim years, we believe NVDA is in a position to achieve that valuation over time,” Gill said.
The analyst said customers are racing to meet the demand for generative AI, which helps Nvidia’s business model.
Divisions like gaming are also seeing higher-than-expected growth, helping to boost guidance and increase the price target.
Oppenheimer:
Schafer said Nvidia has “reset the bar” and is executing towards a $1 trillion market cap.
“We see NVDA’s comprehensive full stack hardware/software platform at the epicenter of DC transition from general-purpose to accelerated compute,” Schafer said.
The analyst said management called for “significant” supply in the second half to meet the demand for orders.
“Nvidia has transformed from a graphics company to a premier leading AI computing platform company.”
Morgan Stanley:
Moore called the first quarter financial results from Nvidia the “largest $ revenue upside in industry history.”
The analyst sees the surge in spending on AI providing benefits to Nvidia earlier than expected.
“Nvidia guided to revenue that we were forecasting they would hit in early 2025, as data center revenue surpasses combined Intel and AMD data center revenue,” Moore said.
The analyst said Nvidia is guiding for a blowout in the second quarter.
“Just three months after Nvidia missed data center expectations in the January quarter, enthusiasm for large language models propels Nvidia to data center revenue higher than the x86 server CPU market in the July quarter.”
Moore said that Nvidia is often conservative when it comes to revision cycles, noting “upside like this has at least historically been followed by more upside.”
Bernstein:
Rasgon said the first quarter results were “extremely strong” with upside hitting several of the company’s business segments.
“In the 15+ years we have been doing this job we have never seen a guide like the one NVDA just put out with FQ2 outlook that was by all accounts cosmological,” Rasgon said.
A “massive surge in generative AI demand” could see the data center segment up by 100% year-over-year, according to the analyst.
Rosenblatt:
Mosesmann hits a Street high price target of $600 on NVDA, calling the company’s growth the “Mother of All Cycles.”
“Nvidia’s epic print and guide on the massive inflection of global generative AI is historical on so many levels and consistent with a needed view that there is a secular change in semiconductor growth ahead,” Mosesmann said.
The analyst said the guidance from Nvidia is years ahead, where most saw the company in the current cycle.
“A fascinating development to us is Nvidia’s coming emergence of becoming an accelerated cloud player itself, basically competing in many ways with current CSP players.”
Bank of America:
Arya calls Nvidia a top pick with its enterprise opportunity, strength in the AI segment, and free cash flow generation.
The analyst said the first quarter results were ahead of estimates, but the real highlight of the earnings report was the guidance.
“This is the largest raise we have seen in our coverage, driven by the start of major data center investments in generative AI and large language models,” Arya said.
Arya calls Nvidia the “unquestionable AI leader” with its full-stack platform of accelerators, Grace CPU, networking and software.
“To $1 trillion and beyond for the AI leader.”
Wedbush:
Bryson upgrades shares of Nvidia to Outperform with the company’s guidance surprising everyone.
“While heading into earnings it was understood that AI demand was strong and would likely drive some upside, we believe the sheer magnitude of AI related growth implied by NVDA’s outlook surprised everyone,” Bryson said.
The analyst sees the data center segment growing by over 100% year-over-year.
One question for the analyst, who previously had a Neutral rating, is the sustainability of the pace of expansion.
“While we believe demand levels need to be monitored, we also believe it is correct to view FQ2 & F2024 revenue levels as a new norm on which we should base our forward revenue estimates.”
NVDA Price Action: Nvidia shares are up 25% to $383 on Thursday, setting new 52-week highs, according to Benzinga Pro data.
Related Link: Nvidia Gets A New Street High Price Target After Blowout Quarter
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