Nvidia's Long-Term Runway in AI and Accelerated Computing Set to Drive Robust Sales Growth: BofA Analyst
Portfolio Pulse from Anusuya Lahiri
BofA Securities analyst Vivek Arya reiterated a Buy rating on Nvidia Corp (NASDAQ:NVDA) with a price target of $550. Arya expects Nvidia's 2Q sales to be inline/modestly ahead better than guide $11 billion (+64% YoY), including around $7.8 billion -8 billion in data center. He also expects 3Q sales to accelerate to up +100% YoY towards $12 billion - $12.5 billion. Arya estimates a gross margin of 70% with an upside if the data center mix increases. He also forecasts AI servers to grow at a 37% CAGR from 1.23 million in CY23 towards 4.4 million by CY27E, enabling Nvidia's total sales to expand at a 26% CAGR to $109 billion.
August 07, 2023 | 6:50 pm
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BofA Securities analyst Vivek Arya reiterated a Buy rating on Nvidia Corp with a price target of $550. Arya expects Nvidia's 2Q sales to be inline/modestly ahead better than guide $11 billion (+64% YoY), including around $7.8 billion -8 billion in data center. He also expects 3Q sales to accelerate to up +100% YoY towards $12 billion - $12.5 billion.
The analyst's positive outlook on Nvidia's sales growth, particularly in the data center and AI server segments, and the reiterated Buy rating, could potentially drive the stock price up in the short term.
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