Nvidia Poised for Continued Dominance in AI Infrastructure, Analysts Forecast Robust Growth
Portfolio Pulse from Anusuya Lahiri
Raymond James analyst Srini Pajjuri has maintained a Strong Buy rating on Nvidia Corp (NASDAQ:NVDA) and increased the price target from $600 to $700. Pajjuri highlights Nvidia's unchallenged position in Gen AI infrastructure and anticipates strong double-digit revenue growth. The growth is expected from new GPU ramps and expansion into restricted markets like China. Despite potential risks from customer spending pauses and competition, the analyst believes Nvidia's software moat and AI demand will minimize impact. Nvidia's PC Gaming business is strong, and expansion into ARM PC processors is likely. The analyst projects FY23 revenue and EPS at $58.83 billion and $11.08, respectively, and notes the valuation already accounts for a potential digestion period. NVDA shares were up 3.43% at $590.65.
January 19, 2024 | 8:04 pm
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Nvidia Corp's stock rating is maintained at Strong Buy with a raised price target from $600 to $700 by Raymond James analyst Srini Pajjuri, who forecasts robust growth in AI infrastructure and strong revenue from new products and market expansions.
The increase in Nvidia's price target by a reputable analyst suggests a positive outlook on the company's financial performance and market position. The strong buy rating and raised target price indicate confidence in Nvidia's continued dominance in AI infrastructure and potential for revenue growth, which is likely to be viewed positively by investors and could lead to a short-term increase in stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100