Breaking News
Investing Pro 0
👀 Bezos, Buffett & Berkowitz: What's in Their Portfolios? Unlock Data

'Cosmological', 'Just wow', 'Mother of all cycles': Analysts discuss Nvidia as shares rally 25%

Published May 25, 2023 05:49AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
NVDA
+2.54%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- Nvidia (NASDAQ:NVDA) shares skyrocketed in premarket Thursday trading after the chipmaker offered a blockbuster outlook for the second quarter.

The company's fiscal first-quarter results easily topped analyst estimates. Nvidia shares are up 25% in premarket trade on Thursday following the report.

Nvidia announced earnings per share of $1.09 on revenue of $7.19 billion. Analysts polled by Investing.com anticipated EPS of $0.92 on revenue of $6.52B.

First-quarter revenue in its data center business reached a record $4.28B, up 14% from a year ago and up 18% from the previous quarter. That helped offset weakness in its gaming business, with revenue down 38% to $2.24B from a year ago, but still better than what the Street was expecting.

“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process," the company said.

“Our entire data center family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them,” it added.

Looking ahead to fiscal Q2, the company guided revenue in a range of $11.00B, plus or minus 2%, crushing the Street expectations for $7.13B.

The chipmaker is experiencing a massive boost to chip demand from growing interest in artificial intelligence (AI). CFO Colette Kress said on the earnings call that demand for high-end chips "has extended our data center visibility out a few quarters, and we have procured substantially higher supply for the second half of the year."

Following a massive beat-and-raise quarter, Wall Street analysts are sharply raising numbers on Nvidia. Baird analysts upgraded the stock to Outperform.

Rosenblatt analysts nearly doubled the price target to a new Street-high of $600 per share after an "epic print and guide."

"Nvidia’s epic print and guide on the massive inflection of global generative AI is historical on so many levels and consistent with a needed view that there is a secular change in semiconductor growth ahead. We call this the Mother of All Cycles or MOAC," they said in a note to clients.

Bernstein analysts also hiked the price target, going to $475 from the prior $300 per share.

"In the 15+ years we have been doing this job we have never seen a guide like the one NVDA just put up with FQ2 outlook that was by all accounts cosmological, and which annihilated expectations," they said.

With shares up 109% year-to-date through Wednesday's close, the analysts also discussed what investors should do with Nvidia stock at current levels.

"Everyone has been looking for ways to play AI that aren't as expensive as NVIDIA given the run this year. However, perhaps NVDA itself is the best way to accomplish that (while still undeniably pricey it is clearly not quite as expensive as it looked) and the narrative, backed up by actual products and sales, still has legs in our opinion."

(Additional reporting by Senad Karaahmetovic)

 
 
 
'Cosmological', 'Just wow', 'Mother of all cycles': Analysts discuss Nvidia as shares rally 25%
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (34)
James Liasi
James Liasi May 25, 2023 12:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Absolutely terrific numbers but the valuation of the company has got too carried away and needs a cooling off period. Definitely a stock that should be in everyones portfolio though
Dave Jones
Dave Jones May 25, 2023 9:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Low ball estimates by a medium sized company. Where are the chips made?
Tre Hsi
Tre Hsi May 25, 2023 9:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
is a $900b (market cap) company still considered mid-sized?
Brad Albright
Brad Albright May 25, 2023 9:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They have a manufacturing plant in Arizona. They are expanding it thanks to legislation signed by Biden.
Kevin Avila
Kevin Avila May 25, 2023 9:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nah when crypto fails tons of extra chips everywhere…
Jouni Trading
Jouni May 25, 2023 9:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You know market's gonna collapse when analysts speak and act like crypto moonbois. Happens EVERY. SINGLE. TIME. before major correction. Just look at all the analysts posts and comments for last few weeks nad now even accelerating, while existing reality going the other way. But keep on rolling the ball boys lol.
Brad Albright
Brad Albright May 25, 2023 8:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
God forbid these "reporters" should add any additional context beyond their stenography. Pertinent to American readers will be NVIDIAs tripling of its Arizona manufacturing plant thanks to the bipartisan CHIPS act signed into law by President Biden.
Dave Jones
Dave Jones May 25, 2023 8:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Currently, Taiwan Semiconductor Manufacturing Co. (2330.TW) builds the bulk of Nvidia chips .
Brad Albright
Brad Albright May 25, 2023 8:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dave Jones It's a good thing for the U.S. then that they are on-shoring more of their manufacturing.
Htos 1av
Htos 1av May 25, 2023 8:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If I were president, I'd have Nvidia move to the southern US, with a ten year tax holiday. I'm reading this on an RTX Quadro M4000 Nvidia GPU. Pulled from a 2011 Tesla desktop supercomputer-it works....way better than the $3000 plastic chew toys sold to gamers.
Brad Albright
Brad Albright May 25, 2023 8:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Will Arizona do?
Tre Hsi
Tre Hsi May 25, 2023 8:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"If I were president, I'd have Nvidia move to the southern US, with a ten year tax holiday."  -- why should a US president favor one region of the country over another?  and why would a US president be giving one company a tax holiday over the other companies, assuming you even have the authority?
Derick Lim
Derick Lim May 25, 2023 8:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why don't the Rep and Dem let Nvidia decide the debt ceiling and appoint AI as the next Prez ...
Rick Rule
Rick Rule May 25, 2023 8:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Artificial intelligence would be better than no intelligence, which is what we have now!
Derick Lim
Derick Lim May 25, 2023 7:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nvidia the saviour of US economy.....no more recession, inflation and debt ceiling fear ..
Petet Larkar
Petet Larkar May 25, 2023 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's going to 550
Petet Larkar
Petet Larkar May 25, 2023 7:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I feel sorry for all you chumps
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email