Goldman Sachs Comments on NVIDIA (NVDA)

Goldman Sachs analyst Toshiya Hari reiterated a Neutral rating and $166.00 price target on NVIDIA (NASDAQ: NVDA)

The analyst comments "Based on our recent conversations, we believe most investors were expecting a negative pre-announcement and/or a weak FY3Q (October) guide from Nvidia. That said, the magnitude as well as the source of the earnings miss was surprising with Data Center and Professional Visualization (i.e. the two highest gross margin businesses) contributing as opposed to Gaming driving ~100% of the incremental weakness. Looking ahead, while we expect the updated outlook by Nvidia to somewhat 'de-risk' Street estimates, we believe the market will want to better understand the supply dynamics in Data Center ("is this purely a supply problem or is there also a demand element?") as well as the forward outlook in Gaming ("are you shipping below end demand as of the July or October quarter and how significant could the overhang from COVID and crypto be?") before calling the bottom in the stock."

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $189.89 yesterday.

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