Nvidia (NVDA) once again exceeded Wall Street’s lofty expectations in its latest earnings report.
For the quarter, Nvidia reported adjusted earnings per share (EPS) of $5.16 on revenue of $22.1 billion. Analysts had expected EPS of $4.60 and revenue of $20.4 billion. This figure represents a significant increase from results for the same period last year. Revenue increased over 486% and sales increased over 262%.
The company also said it expected first-quarter sales of $24 billion, plus or minus 2%, beating analyst expectations. Wall Street had expected $21.9 billion for the quarter.
Wall Street responded with a significant price target hike and overall bullish sentiment for the stock, which rose by double digits following Thursday’s earnings release.Median price target for stock price 19% increase Following the report.
Here’s a summary of what Wall Street is saying about Nvidia after its fourth-quarter earnings release.
Toshia Hari, Goldman Sachs, buy rating, price target $875 (from $800)
“NVIDIA has achieved what seemed like a very high bar with Data Center once again serving as a key growth driver. [greater than three times year-over-year] Model data center revenue growth for fiscal year 2024. [greater than two times year-over-year] Because 2025 is not only expected to see sustained growth, but also an increase in large-scale AI infrastructure spending. [Communication service providers] The development and adoption of AI is increasing across consumer internet companies as well as enterprise customers representing a variety of industries and, increasingly, sovereign nations. ”
Vedvati Schroetre, Jefferies, buy rating, price target $780 (from $610)
“It has been observed that the computing era is typically dominated by a single ecosystem served by a single vertically integrated chip + hardware + software company, such as IBM for mainframes or Apple for smartphones. NVDA’s powerful commentary on using GPUs for inference and inference with training workloads and our field checks confirm that NVDA has become the AI ecosystem of choice. We believe that many investors continue to underestimate the amount of investment NVDA has poured into its ecosystem and the market leadership it has achieved. NVDA as the Best Ecosystem for AI Workloads This leads to a virtuous cycle of software developers and platform suppliers who hire
Vivek Arya, Bank of America, buy rating, price target $925 (from $800)
“Perhaps the most important new data point in NVDA’s earnings call was that AI inference contributed nearly 40% of the 2024/2023 AI compute mix. This is correlated with AI generating revenue, which is considered to be a significant increase in revenue, in contrast to AI training.Second, supply tightness and lower dependence on China (data center sales are expected to increase compared to 20-25% pre-restrictions). Highlights the company’s positive comments regarding rising sovereign demand for AI in countries (only mid-single digits high), new pipelines, and growing sovereign demand for AI in countries and others.”
Timothy Arcuri, UBS Investment Bank, Buy rating, $800 price target (from $800)
“There were a number of items that could suggest a slowdown in revenue growth going forward (primarily supply and operating costs), but we will have to see how these change. We’re still in the early stages of what’s possible.” AI (particularly in healthcare/drug discovery) and NVDA are the de facto global AI platform, so it’s worth taking a more cautious view. seems premature. We maintain a buy rating, although we’ve lowered our estimate a bit to account for the possibility of slower earnings growth, and our price target is between $850 and $800. ”
Harlan Suhr, JP Morgan, overweight rating, price target $850 (from $650)
” [Nividia] The team noted that demand will continue to outpace supply throughout CY24, allaying fears of inventory build-up/correction in the second half of the year. The team feels positive for sustained growth into CY25+, driven by the shift to accelerated computing, proliferation of generative AI applications, and building out sovereign AI.
“The team provided examples of strong AI-driven monetization from customers, including how ServiceNow delivered the largest net new annual contract contribution ever, and how Microsoft 365 Copilot delivered the highest net new annual contract contribution in its first two months, surpassing its previous two has grown faster than the two leading Microsoft 365 enterprise suites).”
Atif Malik, Citi Analyst, Buy rating, $820 price target
“NVIDIA expects demand for AI to remain strong and outstrip supply throughout the year. , and the company expects its data center infrastructure installed base to double to $1 trillion over the next five years. [Year-over-Year] Data center performance could be a headwind for the stock, but long-term profitability looks attractive given the company’s $200 billion compute TAM by 2027. ”
Gil Luria, DA Davidson, Neutral rating, $620 price target
“While 2025 will be a great year for NVIDIA, we believe that continued growth may not be possible beyond 2026. The message from our four largest customers is that they are Their purchases are characterized as demand, suggesting they are accelerating spending this year to meet demand. This hints at the possibility of cutting back on computing spending as we approach the trough of disenchantment. We believe that customers like Microsoft are solely focused on AI computing, not NVIDIA alone, and are not interested in sustaining this level of capital investment indefinitely. NVIDIA’s Data Center Business The outlook for FY27 reflects the street’s lowest, with the outlook likely to decline sequentially over the next four to six quarters. $ to $620, which was quoted in advance.”
Ruben Roy, Stifel, buy rating, price target $910 (from $865)
“We found management’s comments on revenue diversification noteworthy as questions mount about the sustainability of NVDA’s growth. In addition to continued growth in network and software, NVDA’s overall data center revenues are increasingly diversified across industries and geographies, including an increasing contribution from data center-related demand.”In our view, this diversification will continue to be driven by AI-related demand. It is highly likely that this will continue. [return on investment] It’s accelerated for end users. NVDA continues to believe that the transition from general-purpose computing to accelerated computing presents a $1 trillion opportunity in the long term… We continue to expect to be the primary beneficiary of the. Despite improving supply across NVDA’s product set, management views demand to remain strong over the medium term and expects demand to continue to outpace supply for new products. ”
Ananda Barua, Loop Capital, rating “buy”, price target $1,200
“We believe NVDA may be eyeing a $150 billion GPU opportunity in 2024. The key difference between our view and the Street (we believe) is that high-end data Our work on center GPUs, which NVDA believes is tracking towards $5M in 2024/FY2025, more than $6.5M in FY2025/FY2026.Street (Investor Conversations) ), we believe total enterprise and data center GPUs will be between 4 million and 4.5 million in 2024/2025.”
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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