Analysts expect solid earnings and guidance from NVIDIA (NVDA)
NVIDIA's (NASDAQ: NVDA) price target was raised at Oppenheimer and Susquehanna ahead of its earnings release after the close on Wednesday, May 24.
Oppenheimer analyst Rick Schafer raised the firm's price target on the stock to $350 from $300, maintaining an Outperform rating. He told investors they see upside to the company's print and outlook.
"DC expected up through the year as cloud vendors scale-out AI infrastructure. ChatGPT has sparked a sense of urgency some are calling "AI's iPhone moment". AI models continue to grow and proliferate. NVDA's full stack hardware/software platform remains the cornerstone to an expanding AI ecosystem," the analyst wrote. "DC, high-performance gaming, and auto are a triple play for sustained growth."
Susquehanna's Christopher Rolland raised the price target on Positive-rated NVDA to $350 from $310 per share. The analyst said the AI arms race should drive a constructive DC outlook.
"Overall, we expect better results/guidance, driven largely by the ongoing AI gold rush and subsequent DC GPU demand," said Rolland. "We are expecting great things from DC, with Gaming continuing its recovery."
Elsewhere, Deutsche Bank analyst Ross Seymore, who has a Hold rating and $220 price target on NVDA, said they expect a solid report and guidance.
There is "room for upside vs. the Street in both as the ever-growing list of potential applications for AI has driven strong demand for NVDA's leading AI compute processors," added Seymore.
"We expect the AI-enthusiasm to carry the day and likely continue to provide a strong safety net for the share price despite its somewhat amazing +107% appreciation YTD."
By Sam Boughedda