Following earnings last night, an analyst at BofA Securities lifted the price target of shares of NVIDIA Corporation (NASDAQ:NVDA) to $750 from earlier $700.
Analyst Vivek Arya commented, “Solid FQ1 with $5.7bn sales, +84% YoY, about $200mn above cons, with Q2 guide of $6.3bn nearly $800mn ahead of cons. expectations. Overall we raise CY21/22E pf-EPS by 23%/21% to $16.45/$18.88, and see path for NVDA to maintain 20% sales/25% EPS growth and drive $30+ of pf-EPS power by CY25E. N-t, bears will likely complain about crypto driving unsustainable graphics card strength, and about deceleration in data center, but we highlight:
1) By diverting mining demand to cost-effective Crypto Mining Processor (CMP) products and by reducing mining capability of PC gaming cards, NVDA has effectively ring-fenced mining demand which should provide clarity — indeed ex-CMP, we forecast over 40% growth in CY21 and over 20% in CY22; 2) Gaming channels remain lean and Ampere adoption still only 15% of deployed base, suggesting gaming strength can continue;
3) Core data ctr faces tough comps in Q2 but should still bottom at 30% YoY growth, and accelerate in 2H as enterprise demand returns. Overall we reit. Buy, a top computing pick, highlight solid data center pipeline and raise our PO to $750 from $700, now on lower 39x CY22E PE (vs. 44x prior) to reflect peer multiple compression but still within l-t hist. 20-55x range.”
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Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.