Nvidia's Big Win: Post-Earnings Sell-Side Sentiment

Sell-side analysts  went gaga over NVIDIA Corporation's NVDA strong quarterly results and guidance. There were upward revisions all around, to estimates, to ratings and to price targets.

The graphic chipmaker reported 40 percent sequential revenue growth in the third quarter, with particular strength in Data center and Gaming.

The stock closed Friday up nearly 30 percent at $87.92.

Barclays Admits Being On Wrong Side Of This One, Raises Rating

While noting outperformance in several segments, Barclays said the biggest area of outperformance versus its estimate was in the data center, which saw its business triple year-over-year. Net-net, the firm applauded NVIDIA for its continued execution, although it stepped to the sidelines to re-assess the opportunities into next year.

Barclays raised its rating on NVIDIA to Equal-Weight from Underweight and lifted its price target to $72 from $54.

A Play On 4 Secular Trends

Jefferies analyst Mark Lipacis noted that data center and uto businesses are in nascent growth stages and would continue to drive upside surprises. Jefferies estimates $5 of earnings per share power in three years.

The firm reiterated its Buy rating on shares, while it raised its price target to $95 from $80.

BMO Rates NVIDIA Market Perform

Analyst Ambrish Srivastava noted that the third quarter growth came from data centers, gaming and autos. The firm also noted that the fiscal fourth quarter guidance that calls for 5 percent sequential revenue growth to $2.10 billion at the mid-point is well above the consensus and its estimate for 1 percent to flat growth.

Reflecting the higher revenues, the positive impact of which was trimmed by higher operating expenditure, BMO raised its 2017 and 2018 estimates materially, with fiscal year 2017 and 2018 pro forma earnings per share estimate at $2.60 and $3.10, respectively, up from $1.99 and $2.05.

BMO said it continues to rate NVIDIA a Market Perform but raised its price target to $75 from $59.