Nvidia Expected To Thrive Amid Challenges: Analyst Predicts Solid Results, High Demand For AI GPUs
Portfolio Pulse from Anusuya Lahiri
KeyBanc analyst John Vinh maintains an Overweight rating on Nvidia Corp (NVDA) with a price target of $650, anticipating solid results and guidance above consensus. Despite export restrictions to China and supply constraints, demand for AI GPUs, especially the new L40S and H100 models, is expected to drive strong performance. Vinh predicts minimal impact from China export restrictions in the near term and estimates a potential 20% headwind if compliant GPUs for China are not performant. NVDA's FY25 Data Center revenue is projected at $82 billion, with total revenue and EPS at $96.8 billion and $20.84, respectively. NVDA shares saw a 1.04% increase to $498.10.
November 20, 2023 | 6:04 pm
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NEUTRAL IMPACT
Taiwan Semiconductor Manufacturing Co (TSM) is mentioned as providing incremental CoWoS capacity to Nvidia, which is expected to contribute to Nvidia's strong performance.
While TSM's role in providing additional capacity is positive, the direct impact on TSM's stock is less clear and may be more neutral in the short term, as the focus of the news is on Nvidia's performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
KeyBanc analyst John Vinh predicts strong performance for Nvidia, maintaining an Overweight rating with a $650 price target. Solid results are expected despite China export restrictions, with high demand for AI GPUs like the L40S and H100.
The positive outlook from the analyst, along with the anticipation of strong results and guidance above consensus, is likely to instill investor confidence and could lead to a short-term increase in NVDA's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100