Sell-side on Nvidia (NVDA) post-earnings: Price-target raises aplenty as many point towards buying the 'dip'

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  Mizuho raises PT to USD 140 (prev. 132) and keeps an 'Outperform' rating. Said NVDA reported a good July revenue quarter and guided to a better October quarter with H200 accelerating. Added that the stock is off in after-hours as the guidance was modestly below optimistic expectations, however, Nvidia noted potential GB200 DGX NVL36/72 racks versus full servers in 2025, which "is still a strong tailwind".


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  Raymond James raises PT to USD 140 (prev. 120) and keeps a 'Strong Buy' rating. Results and outlook largely consistent with estimates with the exception of the gross margin outlook, which came in 50-100bps below. On the positive side, Blackwell delays appear better than feared and mgmt. is forecasting a strong ramp in Q4. Hopper demand continues to be healthy with further growth expected in Q4 even as Blackwell ramps in volume. Expects Nvidia's sales momentum to continue well into H2 '25 and gross margins to stabilize in H1 as Blackwell costs mature.


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  UBS keeps a 'Buy' rating on the shares with a USD 150 PT. UBS recommends using the post-earnings selloff in shares of Nvidia as a buying opportunity. NVDA's purchase commitments and supply obligations - the most important metric UBS watches, and historically a harbinger of future growth - grew significantly for the first time in several quarters.


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  Barclays keeps an 'Overweight' rating with a USD 145 PT. Recommends adding to Nvidia positions on the post-earnings weakness. Despite lighter than expected guidance, the key long-term concerns are addressed and the earnings print clears the way for a strong start to 2025.


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  Cantor reiterates Nvidia as a top pick with an 'Overweight' rating and USD 175 PT. At around USD 117/shr, the stock is "still too cheap to ignore", and does not see any change to AI story underpinning Nvidia, and thinks the stock's pullback is "simply another buying opportunity." The firm added that despite the after-hours share selloff, Co. reported a solid earnings report amid Blackwell delay concerns.


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  JPMorgan raises PT to USD 155 (prev. 115) and keeps an 'Overweight' rating. Said Nvidia maintains a "1-2 step lead ahead of competitors with its silicon/hardware/software platforms."


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  Wells Fargo raises PT to USD 165 (prev. 155) and keeps an 'Overweight' rating. Wells finds it hard to see the negatives the Q2 print, Q3 guide, and/or forward-looking Blackwell cycle comments. Recommends buying the pullback in the shares.


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  BofA raises PT to USD 165 (prev. 150) and keeps a 'Buy' rating. Following a solid report, BofA is lifting its FY25 and 26 pro-forma EPS estimates by 9%. Although it adds, the stock is "likely to be volatile" as the Q3 sales outlook "only modestly" ahead of the consensus and below some more bullish expectations, which is likely due to the Blackwell ramp being pushed out by a quarter.


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  Bernstein raises PT to USD 155 (prev. 130) and keeps an 'Outperform' rating. Offers positive commentary on the NVDA report, and states overall  the Co. continues to deliver amid high expectations, and it seems clear that datacentre sequential growth is still well in the cards into year-end.


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  Piper Sandler keeps an 'Overweight' rating with a PT of USD 140. Stated it would be a buyer on the pullback. In the firm's opinion, fundamentals remain intact, but the stock is off on concerns of GM compression paired with guidance not being large enough relative to prior beats. Despite yield issues and a mask change, Blackwell is largely on time and sampling in Q3 and Nvidia is expecting several billion dollars in revenues coming on in Q4. Piper feels the small delay due to yield and manufacturing issues might have caused a small level of impact to revenue guidance.


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  Morgan Stanley raises PT to USD 150 (prev. 144) and keeps an 'Overweight' rating. Notes that the stock "reacting negatively to a good quarter can feed cautious sentiment," but Blackwell is around the corner and should be a positive through all of next year and as such maintains Nvidia as the "Top Pick in semis".


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  Baird raises PT to USD 150 (prev. 120) and keeps an 'Outperform' rating. Co. noted for the stock to escape a likely trading range pattern near term, investors will need to see a successful resolution to the GB200 redesign and subsequent ramp driving a reacceleration in revenue comps.


• WestPark Capital raises PT to USD 165 (prev. 127.50) and keeps a 'Buy' rating.

Reaction details (12:58)

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  Nvidia -3.5% pre-market.

Analysis details (13:15)

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  Nvidia shares fell afterhours despite top- and bottom-line beats; some analysts cited expected increases in shipments of the current Hopper gen of chips over the next couple of quarters, while others remain unimpressed by the Cos. expected growth rate, which is cooling from lofty levels; some noted that the growth projections did not exceed the most optimistic views of the street, while others noted that its margins were up Y/Y, but cooled vs Q1.

29 Aug 2024 - 13:15- Research Sheet- Source: Newsquawk