Nvidia Forecast To Excel In Data Center, Gaming And Why Analysts Predict Strong Supply Improvement
Portfolio Pulse from Anusuya Lahiri
Analysts from Oppenheimer and UBS have reiterated positive ratings on Nvidia Corp (NVDA), with price targets of $650 and $560 respectively, due to expected strong performance in data center and gaming segments, and an improvement in supply constraints. Taiwan Semiconductor Mfg. Co. Ltd. (TSM) is expected to increase CoWoS capacity, which should ease supply constraints for Nvidia. The U.S. government's export restrictions to China may affect Nvidia's sales, but new product announcements are expected to comply with these restrictions. Nvidia's gross margin is expected to rise, and revenue and EPS projections for Q3 and Q4 are above consensus estimates.
November 16, 2023 | 5:07 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Nvidia is expected to see strong performance in data center and gaming, with supply improvements and new products to comply with U.S. export restrictions. Analysts project higher Q3 and Q4 revenue and EPS than consensus, indicating potential upside.
Positive analyst ratings and higher-than-consensus earnings projections suggest a bullish outlook for Nvidia. The improvement in supply constraints and new product launches to address export restrictions are likely to be viewed positively by investors, potentially driving the stock price up in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
TSM's increased CoWoS capacity is expected to ease supply constraints for Nvidia, potentially improving Nvidia's ability to meet demand and positively impacting TSM's business with Nvidia.
As TSM is the supplier increasing CoWoS capacity, which is crucial for Nvidia's production, improvements in TSM's capacity are likely to have a positive impact on its business, particularly if it leads to increased orders from Nvidia. This could be seen as a positive development for TSM's stock in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70