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6 Wall Street Analysts Discuss Key Takeaways From Nvidia's GTC Events

Published 03/23/2022, 07:58 AM
Updated 03/23/2022, 08:30 AM
© Reuters 6 Wall Street Analysts Discuss Key Takeaways From Nvidia's (NVDA) GTC Events
NVDA
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Nvidia (NASDAQ:NVDA) held its much-anticipated GTC event Tuesday. The company's CEO Jensen Huang presented a new GPU, as well as discussed the latest AI and Omniverse developments.

Below we share key insights from 6 Nvidia analysts who attended the event:

Rosenblatt's Hans Mosesmann (Buy, $400): We see Intel (NASDAQ:INTC) at heightened risk (both on the GPU and CPU fronts) and supportive of AMD, Broadcom (NASDAQ:AVGO), and Marvell (NASDAQ:MRVL) roadmaps that incorporate a pace of innovation that should keep up with Nvidia (sans the software angle, which is Nvidias secret sauce).

BofA's Vivek Arya (Buy, $375): Maintain Buy and top sector pick following analyst day where management outlined a nearly $1Tn addressable opportunity across AI hardware, Gaming, Enterprise/Metaverse software, robotics and autos, including a 3x of core data center TAM to $300bn (vs prior analyst day).

Raymond James' Chris Caso (Strong Buy): While the stock is among the most highly valued at 40x, that multiple is justified by 50% annual revenue growth for the last two years (35% annually over the last 5), and such significant product cycles and new revenue streams going forward.

Goldman Sachs' Toshiya Hari (Neutral, $245): We came away from the event with a better appreciation of Nvidias long-term growth opportunity (note managements long-term TAM estimation of $1 trillion) as well as its robust competitive position We are Neutral-rated on the stock given potential risk/reward relative to others in our coverage universe; however, we would look to turn more constructive if/when presented with a better entry point or a normalization in Gaming segment revenue.

JPMorgan's Harlan Sur (Overweight, $350): With leading silicon (GPU/DPU/CPU), hardware/software platforms, and a strong ecosystem, NVIDIA is well-positioned to continue to benefit from major secular trends in AI, high performance computing, gaming, and autonomous vehicles, in our view. Bottom line: NVIDIA continues to be 1-2 steps ahead of its competitors.

Barclays' Blayne Curtis (Overweight, $350): There was no update to guidance but trends do seem to remain strong with the company targeting the remainder of its $5B in buybacks into the end of the year. NVDA remains one of our favorite names with leverage to the Data Center, Auto finally inflecting in 2H, and the most additional drivers of any name in our universe.

By Senad Karaahmetovic

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