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After they recently increased the price target on the chipmaker to a Street high of $800 per share, Rosenblatt now moved quickly to hike the price target to as much as $1,100 per share after the tech titan delivered another stellar set of results and outlook.
“Nvidia’s epic print and guide two quarters in a row is simply unprecedented and just getting started,” analysts said in a note following NVDA’s results.
They highlighted comments from Nvidia’s CEO Jensen Huang, who reiterated his view on the call that Nvidia is looking at the data center opportunity of $1 trillion as most will shift to accelerated computing from general purpose compute for generative AI models.
“Tactically, the $16 billion October quarter guide will grow well into calendar 2024 as supply is expected to increase quarterly,” the analysts added.
Rosenblatt’s new price target is based on a “reasonable” 40x P/E multiple.
“Our estimates move up, and yet we see Nvidia constrained for most of calendar 2024 in GPU compute. From a valuation perspective, we see unconstrained calendar 2025 (now effectively the out-year) EPS approaching the high-$20s.”
Nvidia said it sees Q3 revenue at $16 billion, up or down 2%. It delivered $13.51B in Q2 sales.
Shares are up about 8% in pre-market trading.
