Barclays analysts hiked the price target on Nvidia (NASDAQ:NVDA) stock by $100 to $600 per share ahead of the Q2 earnings report. This way, Barclays joins HSBC and Rosenblatt in having the Street-high PT on NVDA stock.
The analysts believe Nvidia has the potential to deliver another “significant” beat-and-raise earnings report on the back of the GenAI tailwinds.
“We continue to view NVDA as the best name to participate in the AI theme and raise our PT to $600 with $20+ of EPS potential next year in sight after earnings,” they said in a client note.
They see Nvidia being able to deliver up to $15 billion in high-end AI chips (H100/A100) revenue in Q3 and even more in Q4. This forecast leaves “potential for more substantial beats and raises over the next few quarters.”
The consensus sees Nvidia’s Data Center business delivering $8.5B in Q3 sales.
“Feedback from our note has been that many investors understand this upside and expect a material beat and raise, but we still think the stock works. AMD looks positioned within the market as the potential first possible viable competitor, but we likely won’t even see initial signs of success until next year. In the meantime, NVDA will continue to take the lion’s share of the economics from the AI boom,” the analysts added.
On the other hand, they see downside risk for AMD (NASDAQ:AMD), while Intel (NASDAQ:INTC) “faces the likelihood of a weaker 2H due to the same Client/traditional server and Enterprise headwinds as AMD.”