NVIDIA (NVDA) PT Raised to $450 at Morgan Stanley, 'guides to the largest $ revenue upside in industry history'
Morgan Stanley analyst Joseph Moore raised the price target on NVIDIA (NASDAQ: NVDA) to $450.00 (from $304.00) while maintaining a Overweight rating.
The analyst comments "Nvidia guides to a blowout in July as data center revenue nearly doubles q/q, as we are seeing a transformation of the data center playing out in real time. 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, with strong visibility to continued growth. We simply have no historical precedent for the magnitude of this step function. particularly in absolute dollar terms given $4 bn of data center upside in the July quarter. It's important to note that NVIDIA's track record early in an upward revision cycle is typically very conservative; while the company can occasionally be too optimistic during periods of deceleration,guidance for upside like this has at least historically been followed by more upside. We found the company's comments that data center in 2h would be meaningfully higher than 1h as a sign of confidence,and while that does not necessarily mean that 3q is above 2q (given that 2h>1h benefits from the near 100% q/q growth from 1q to 2q), in the context of the company's historic patterns it certainly bodes well.Further, the company is obviously characterizing July as a constrained number - which is corroborated by customer commentary - so the July quarter does not appear to be a one-time spike. How is this growth even"