On Thursday, May 29, Loop Capital Markets reaffirmed a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $175. The Loop Capital analyst believes that the corporation has a strong market position.
The analyst pointed out that NVIDIA Corporation delivered a solid April quarter and provided good guidance for the July quarter, even though the company could not include revenue from China because of the export restrictions.
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
According to the analyst from Loop Capital, the ban on shipments to China caused NVIDIA Corporation to miss out on a huge amount of revenue. If the company had been able to complete shipments of its H20 chips to China, it would have exceeded Wall Street’s estimates for the April quarter revenue by $3.2 billion instead of the reported $700 million. Additionally, NVIDIA Corporation should have been able to guide the July quarter revenue to $4 billion higher than the consensus forecast and still surpass that estimate by another $4 billion.
Loop Capital’s analysis suggests that despite the substantial revenue loss due to the export ban, the company’s underlying demand and business growth remain strong due to its strong market position.
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