We recently published a list of 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks on Wall Street’s radar.
One of the most notable analyst calls on Thursday, May 29, was for NVIDIA Corporation (NASDAQ:NVDA). Bank of America reiterated the stock as “Buy” and raised its price target on its top pick, Nvidia, to $180 per share from $160. NVIDIA specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
The rating follows Nvidia’s earnings on Wednesday. The company reported fiscal first-quarter earnings and revenue, beating analyst expectations. Its data center business led the way, with sales surging 73% year over year. Moreover, its current quarter revenue guidance was almost in line with analyst estimates at $45 billion, an outlook that could have been $8 billion higher if Nvidia didn’t face lost sales from the restriction on exporting its H20 chips to China.
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
The bank noted three major takeaways from the earnings call.
“Three major takeaways from the Q1 call: 1) China derisked, with $15bn in 1H sales of H20 product now already in the model, 2) Blackwell racks in full production, with every large hyperscaler now ramping close to 1K racks/week, 13K racks/quarter or ~$30bn+/q at $2.5mn+ rack ASP (or $100bn+ across the top few hyperscalers, though NVDA didn’t quantify further), and 3) NVDA confident in GM recovery back to mid-70s % sometime later in the year, another sign of improving demand and rack-scale execution.”
It further said that it is positive on the stock considering its transformation from a PC graphics chip vendor to a major supplier.
“Our positive view on Nvidia is based on its underappreciated transformation from a traditional PC graphics chip vendor, into a supplier into high-end gaming, enterprise graphics, cloud, accelerated computing and automotive markets.”
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This article is originally published at Insider Monkey.
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