Citi Out First to Recap NVIDIA (NVDA) Earnings
Citi analyst Atif Malik reiterated a Buy rating and $1,030.00 price target on NVIDIA (NASDAQ: NVDA).
The analyst comments "Fundamentals: NVDA reported Apr-Q revs/non-GAAP EPS (ex-SBC) of $26B/$6.12 vs. our $24B/$5.39 and Street’s (FactSet) $24.6B/$5.60 and guided Jul-Q revenue to $28B (at MP) vs. our $27.5B and Street’s $26.6B. Higher Hopper GPU shipments could be (yet again) highlighted as the primary driver of this quarter’s sales and margin outperformance. Apr-Q non-GAAP GM of 78.9% was 190bps higher than Citi’s 77% and 170bps above Street’s 77.2%. Non-GAAP GM Jul-Q, as expected, was guided to come down from the Apr-Q high. The metric is guided it to be 75.2% (MP), which is 100bps above Citi’s 74.2% forecast but flat vs. Street’s. Apr-Q Segments Sales Results: – Data Center sales rose 23% Q/Q vs. Citi’s/Street’s +11%/+16%. – Gaming revenue was down 8% Q/Q vs. Citi’s/Street’s -9%/+1%. – Pro Visualization sales decreased by 8% Q/Q vs. Citi’s/Street’s +5%/+11%. – Auto sales were up 17% Q/Q vs. Citi’s/Street’s +5%/+8%. Going into the earnings call, investors will be focused on… 1) GB200 ramp/pipeline, 2) potential air pocket in AI demand in 2H24, 3) B200’s impact on LT gross margin, 4) power constraints on AI data center roll-outs, and 5) sovereign AI & China H20 demand."
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Shares of NVIDIA closed at $953.86 yesterday.