There is a lot of hype these days about the potential of AI. Fueled by the rise of ChatGPT and the subsequent race for AI supremacy, all the Big Tech gangs are looking to get a piece of the action.
According to Rosenblatt analyst Hans Mosseman, this opportunity is in no danger of being overhyped. In fact, the 5-Star analyst knows exactly which companies are best positioned to benefit the most from this huge growth.
“We see Nvidia (Nasdaq: NVDA, The biggest technology change the world will ever see is transformative AI everywhere and in everything, Mosseman said. “CEO Jensen Huang's AI vision is openly playing out to coincide with Intel's structural secular decline, signaling a changing of the guard in Silicon Valley for generational semiconductor global leadership.”
Mosseman's comments come ahead of the chip giant's first quarter (April quarter) fiscal 2024 results, which the company will deliver on May 24. Mosseman expects the company to deliver or even slightly better results than anticipated by the Street — consensus calls for revenue hitting $6.5 billion, and so does the company +/- 2%. The Street is calling for non-GAAP GM (gross margin) of 66.5%, ~50 bps above Nvidia's guide of 65.3% +/-.
The analyst highlights the data center Hopper H100 ramp, “solid gaming trends (Ada Lovelace), and stable networking” as reasons behind the optimistic forecast.
Looking ahead to the July quarter, Mossman expects Nvidia's top-line guide to come in at ~$7.10 billion, just ahead of the Street's $7.09 billion. That said, on the other end of the spectrum, Mosseman is looking for non-GAAP EPS of $1.04 — slightly below the $1.06 consensus estimate.
Overall, Mosseman's Buy rating or $320 price target is unchanged. There is a potential upside of 13.5% from current levels. (To see Mossman's track record, Click here,
Now turning to the rest of the street, where a total of 38 analysts have thrown in the hat for NVDA reviews over the past 3 months. These break down into 30 Buys, 7 Holds and 1 Sell, all uniting for a Strong Buy consensus rating. However, considering shares are up 93% year-to-date, the $288.24 average target represents a modest 2% upside. (Look nvidia stock forecast,
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Disclaimer: The views expressed in this article are those of select analysts only. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.