It’s not the first time superlatives have been piled up for Nvidia (NVDA) following the chip giant’s exceptional July quarter earnings.
That said, it will be difficult to find a more enthusiastic reception of the results than that of the Rosenblatt analyst. Hans Mosesmann, who says Nvidia is on “a completely different plane from other semiconductor companies.”
So what did Mosesmann like about the exhibition of the quarter? Perhaps a better question could be: what not? The current uncertainty surrounding the ARM deal aside, the answer would be, not much.
First of all, naturally there were beats in both the top line numbers and the bottom line numbers. Non-GAAP earnings per share of $ 1.04 stood at $ 0.02 above estimates, while revenue increased 68.2% year-over-year to reach $ 6.51 billion, in the process topping Street’s call by $ 170. millions.
Massive sales were driven by growth in nearly every segment, including record gaming revenue ($ 3.06 billion, 85% more than in the same period a year ago), data center (35% more at $ 2.37 billion) and professional viewing. Supply continues to outpace demand in the gaming segment, while data center growth was primarily driven by hyperscale customers building infrastructure to market Ai on their services.
In the future, the company’s outlook is also secure. For the October quarter, Nvidia anticipates revenue of $ 6.80 billion, a sequential rally of 4.5% and above the consensus estimate of $ 6.48 billion. All end markets should see growth in the next quarter, with the data center poised for “accelerated demand.”
More than the array of impressive metrics, Mosesmann believes the results reflect the “general alignment of many years of architecture, hardware and software efforts in the current transition from AI ‘training’ to AI production or inference.”
The analyst says that the rise of artificial intelligence could amount to the “biggest technological inflection in history,” and calls it the “mother of all cycles.” There are no prizes here for guessing who will lead the charge as the “main AI game”.
To this end, Mosesmann raised his target price on NVDA from $ 250 to a high of $ 300. Investors could pocket 57% profit, if Mosesmann’s thesis is developed accordingly in the next year. (To view Mosemann’s history, Click here)
Nvidia remains a firm favorite on Wall Street. Except for 1 Hold and Sell each, all the other 28 recent reviews say Buy, culminating in a consensus rating of Strong Buy. The shares are expected to change hands for a premium of 11.5% within 12 months, given that the average price target is $ 225.44. (View NVDA Stock Analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment..