7 Nvidia Analysts Break Down Long-Term History, New Products, and Data Center Growth Post-Q1

Many NVIDIA Corporation NVDA reacted to the chipmaker’s first-quarter report with lower price targets. Here’s what they had to say.

NVIDIA analysts: BMO analyst Ambrish Srivastava has an outperform rating and lowered the price target from $375 to $300.

Wells Fargo analyst Aaron Rakers has an overweight rating and a price target of $250.

Mizuho Securities analyst Vijay Rakesh has a buy rating and lowered the price target from $345 to $290.

Raymond James analyst Chris Caso has a strong buy rating and lowered the price target from $365 to $250.

Needham analyst Rajvindra Gill has a buy rating and lowered the price target from $400 to $240.

Rosenblatt analyst Hans Mosesmann has a buy rating and price target of $400.

KeyBanc analyst John Vinh has an overweight rating and lowered the price target from $310 to $250.

Related Link: What NVIDIA Stock Looks Like As First Quarter Earnings Approach

Nvidia’s takeaways: Weaker forecasts and a slowdown in the company’s gaming activity led to a lower price target from Srivastava.

“In the 2H, NVIDIA will likely have an in-game architectural change, as well as continued pressure on the business from inflation, which will likely lead to a much lower F3Q for the season,” Srivastava said. .

Several industries, including gaming and data centers, are feeling the impact of supply issues, lockdowns in China and the war in Ukraine.

Rakers reiterated a buy rating and kept the price target in place, noting that the company’s data center business is showing momentum, along with new products to come in the second half of the fiscal year.

“The company also highlighted the normalization of channel inventory levels and hinted at a next-gen product cycle, which we believe may begin to impact F3Q23,” Rakers said.

Rakesh dropped the price target but said the long-term growth remains in place.

“We believe NVDA continues to drive data center and AI leadership, positioning it through 2023, and the near-term reset should be a good entry point,” Rakesh said.

The analyst points out that the new launches to come in the second half of the financial year are exciting and also contribute to the increase in the number of stocks during the quarter.

Long-term growth is Caso’s scenario, which also reduced the price target.

“The reason we considered NVDA to be one of the stocks we’re sticking with despite the market pullback is not just because of their long-term secular growth prospects, but also their product cycles. short term in the game,” Caso said.

New products could help boost the third quarter and grow by the end of the calendar year, Gill said.

“We see these applications as driving significant growth as the company develops products that can handle any workload,” Gill said.

One item mentioned in NVIDIA’s earnings report was the cryptocurrency market.

“Crypto, still a wildcard was described as a problem for weakening going forward if there was a major issue in the April quarter,” Mosesmann said.

The analyst sees a “massive multi-product cycle” coming for the company and a long-term story unfolding. Mosesmann maintained a price target of $400.

The big stories for Vinh were weakening gaming revenue and strengthening data center momentum.

“Despite the absence of data center sales in Russia, NVDA is confident that the data center will continue to grow q/q for the rest of the year,” Vinh said.

NVDA Price Action: Nvidia shares gained 5.16% on Thursday, closing at $178.51, according to Benzinga Pro.

Michael J. Chiaramonte