Wells Fargo analyst Aaron Rakers reiterated Overweight on Nvidia Corp (NASDAQ: NVDA) with a $250 price target.
Given the recent strength in shares of NVDA, he recommends a wait-and-see stance on NVDA’s upcoming F3Q23 results.
Rakers re-rating reflected the deepening platform growth thesis on NVDA with a greater investor focus on Datacenter and Gaming.
Investors should focus on Datacenter with positive recent demand data points. NVDA’s H100 ramp and pricing uplift is a key focus.
NVDA’s views on offsetting the ~$400 million impact from U.S. export controls on A100 shipments into China and confidence in the ability to ship recently introduced A800 will also be a key topic of discussion.
Rakers expects F3Q23 results or a tempered F4Q23 guide will provide investor confidence in a Gaming bottom if NVDA reiterates sell-through demand.
A premium multiple for NVIDIA is warranted given what he believes is a multiyear strong competitive positioning for data center growth driven by cloud and AI, gaming, next-generation autonomous vehicle applications, and an expanding ecosystem of products and applications (e.g., Omniverse)
Price Action: NVDA shares traded higher by 1.09% at $165.06 on the last check Monday.
Latest Ratings for NVDA
Date | Firm | Action | From | To |
|---|---|---|---|---|
Mar 2022 | Goldman Sachs | Reinstates | Neutral | |
Feb 2022 | Summit Insights Group | Downgrades | Buy | Hold |
Feb 2022 | Mizuho | Maintains | Buy |
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Source: https://finance.yahoo.com/news/nvidias-datacenter-gaming-strengths-keep-201058266.html