Benzinga - by Chris Katje, Benzinga Staff Writer.
Semiconductor giant NVIDIA Corporation (NASDAQ:NVDA) reported first-quarter financial results after market close Wednesday.
Analysts size up the results and the future of the company.
The NVDA Analysts: Bank of America analyst Vivek Arya had a Buy rating and raised the price target from $1,100 to $1,320.
Morgan Stanley analyst Joseph Moore had an Overweight rating and raised the price target from $1,000 to $1,160.
Mizuho analyst Vijay Rakesh had a Buy rating and raised the price target from $1,000 to $1,180.
Oppenheimer analyst Rick Schafer had an Outperform rating and $1,100 price target.
Rosenblatt analyst Hans Mosesmann had a Buy rating and $1,400 price target.
Benchmark analyst Cody Acree had a Buy rating and raised the price target from $1,000 to $1,350.
Raymond James analyst Srini Pajjuri had a Strong Buy rating and raised the price target from $1,100 to $1,200.
JPMorgan analyst Harlan Sur had an Overweight rating and raised the price target from $850 to $1,150.
Needham analyst N. Quinn Bolton had a Buy rating and raised the price target from $850 to $1,200.
Truist analyst William Stein had a Buy rating and raised the price target from $1,177 to $1,288.
Piper Sandler analyst Harsh Kumar had an Overweight rating and raised the price target from $1,050 to $1,200.
Related Link: NVIDIA Q1 Earnings Preview: Analysts Anticipate Strong Results, Top AI Stock — ‘Best Secular Idea In All Of Technology’
Bank of America on Nvidia: The semiconductor stock is a top sector pick for Arya.
The analyst said Nvidia is leading a multiyear transition to accelerated compute.
"NVDA is not just growing sales faster than any other megacap, but also generating over 57% FCF margin," Arya said.
The analyst said Nvidia could generate $120 billion in free cash flow in the next two years and hit earnings per share of $50 in two years.
Morgan Stanley on Nvidia: The semiconductor company "shows no sign of slowing down," even in a product transition, Moore said.
"Nvidia growth remains very strong through product transition," Moore said.
The analyst said Nvidia is the clearest way to get exposure to the AI sector.
"As we have been saying for two quarters, the demand side signals from customers and front line sales seem considerably more optimistic than supply chain or lead time would indicate."
Mizuho on Nvidia: Demand for sovereign AI was a key in the quarterly commentary, Rakesh said.
"NVDA remains our Mizuho 2024 Top Pick, leading the AI accelerator market growing >60% CAGR '23-‘27E," Rakesh said.
The analyst said the results and guidance were strong as the company continues to execute on its AI roadmap.
"We see new markets starting to ramp with Sovereign AI. We believe, to NVDA seeing Sovereign AI revenue in the ‘high-single-digit $B' range in F25E, up from $0 in F24."
Oppenheimer on Nivida: The company surpassed "lofty expectations" in the first quarter, Schafer said.
"We see NVDA as best positioned in AI, benefiting from full stack AI hardware/software solutions," Schafer said.
The analyst said the company remains the purest way to play "AI proliferation."
"NVDA's entrenched DC AI ecosystem is core to GenAI adoption."
Rosenblatt on Nvidia: An Industrial Revolution highlighted by Nvidia CEO Jensen Huang was a key takeaway in the quarterly results by Mosesmann.
"The primary challenge is not just retrieving information but actually generating accurate responses rooted in digital intelligence," Mosesmann said.
The analyst said Nvidia is focused on a top-down and bottom-up approach.
"We believe we are at the beginning stages of what we refer to as the Mother of All Cycles."
Benchmark on Nvidia: A first-quarter beat and raise may have silenced skeptics worried about a pause in demand, Acree said.
"We see nothing in the report or its outlook to warrant a call to become increasingly cautious on our recommendation of NVDA's shares," Acree said.
The analyst said the only caution would be how long could Nvidia keep up the growth pace, which right now shows no signs of slowing down.
"NVDA is the unquestioned leader in accelerated computing, generative AI and Inferencing and has substantially grown its portfolio to service the needs of its industry wide customer and application base."
Raymond James on Nvidia: The first quarter was strong as expected, but the commentary on the future was even better, Pajjuri said.
"Commentary around Blackwell was particularly constructive and points to volume ramps starting earlier than we anticipated," Pajjuri said.
The analyst expects momentum to sustain into the second half of fiscal 2025 and risks of pauses in demand are modest.
JPMorgan on Nvidia: First-quarter results were strong and guidance comes in well above consensus for the second quarter, Sur said.
"We were more impressed with the increasing breadth of the customer demand, with enterprise/enterprise verticals driving strong Q/Q growth in addition to consumer internet hyperscalers," Sur said.
Needham on Nvidia: The company is "marching toward a three-trillion market cap" after the first-quarter results and guidance, Bolton said.
"At $1,200, NVDA would become the third $3T market cap company," Bolton said of his price target.
The analyst said demand will outstrip supply for some time on several Nvidia products.
Bolton said supply of H200 and B100 being constrained could lead to some product transition risk in upcoming quarters.
Truist on Nvidia: New products from the semiconductor company will support strong revenue growth estimates, Stein said.
"We believe the near-term controversy (lead-time compression) is overwhelmed by a flurry of new product introductions," Stein said.
Piper Sandler on Nvidia: There could still be upside for the semiconductor company after shares have gained over 200% in the last year, Kumar said.
"The highlight of the call was that the Blackwell architecture is now in full-scale production," Kumar said.
The analyst said demand for products remains strong even in the product transition cycle. A strong customer base of top companies like Amazon, Alphabet (Google), Meta Platforms, Microsoft, OpenAI, Oracle and Tesla were also highlighted by Kumar.
NVDA Price Action: Nvidia shares are up 8.90% to $1,034.02 on Thursday, hitting new all-time highs.
Read Next: Jensen Huang Says ‘Other Blackwells Coming’ Even As Nvidia Gears Up For ‘Lot Of Blackwell Revenue’ This Year: ‘It’s Going To Be Terrific’
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Latest Ratings for NVDA
| Mar 2022 | Goldman Sachs | Reinstates | Neutral | |
| Feb 2022 | Summit Insights Group | Downgrades | Buy | Hold |
| Feb 2022 | Mizuho | Maintains | Buy |
View the Latest Analyst Ratings
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