NVIDIA (NVDA): Volta Drives Data Center Upside; $220 PT - Stifel
Stifel analyst, Kevin Cassidy, reiterated his Hold rating on shares of NVIDIA (NASDAQ: NVDA) and raised his price target to $220 from $184 after the company printed a beat and raise quarter as gaming, perhaps assisted by crypto-currency, and data center revenue which was driven by the adoption of the new Volta GPUs, came in better than expected. Revenue of $2.911bn was up 10.4% q/q and up 34.0% y/y driving non-GAAP EPS of $1.72, well above the Street’s estimate of $1.33.
In Gaming, revenue of $1.74bn was up from $1.561bn the prior quarter. Strength came from Pascal based GeForce gaming GPUs driven by new games, iCafe’s in Asia, holiday seasonality, and eSports. In Datacenter, revenue of $606mn was up from $501mn the prior quarter. Management attributed strength coming from strong adoption of the Tesla V100 GPUs based on the Volta architecture.
Shares of NVIDIA closed at $217.52 yesterday.