NVIDIA Corporation (NASDAQ: NVDA) stock jumped after Bank of America raised its price target from $700 to $800 per share while maintaining a Buy rating. This optimistic forecast precedes Nvidia’s upcoming earnings report scheduled for February 21, with analysts expecting results to exceed current expectations.
Analysts anticipate a modest yet significant upside of 3% to 5%, equivalent to $500 million to $1 billion, for both the reported FQ4 and projected FQ1. This expectation has primarily been attributed to gains in supply, counterbalanced by restrictions in China and transitional effects preceding the B100 accelerator’s launch, scheduled for the latter half of 2024.
Analysts wrote,
“While a 3-5% beat would pale vs. the 10%/22% beat/raise of prior quarters and perhaps disappoint some bulls, the more measured pace will also be seen as creating more fertile ground for continued growth in CY25 and beyond.”
The analysts conveyed that the need for artificial intelligence is just emerging and is turning into a vital part of operations.
“It’s “early days,” they mentioned, but the “results from top US cloud customers suggest a solid motivation for spending in genAI.”
Analysts added,
“Enterprise genAI adoption has yet to kick off and become more material in CY25, with NVDA benefitting from its widespread availability on public clouds and unique partnerships with ServiceNow, SAP, VMWare, Dell, HPE and others.”
BofA anticipates NVDA to continue its leadership in AI inference. The bank predicts the data center of the AI accelerator market to expand from $43 billion in CY23 to over $160 billion by CY27E, with training and inference likely contributing equally. NVDA is expected to retain a 90% market share in training and secure more than a 50% share in inference. Much of MSFT’s AI achievements have been in AI inference, primarily on the NVDA GPU.
NVIDIA (NASDAQ: NVDA) Stock Performance
NVDA stock soared 4.97% to close at $661.60 on Friday. The traders had exchanged hands with 47,344,691 (47.34 million) shares compared to the average daily trading volume of 42.26 million.
