Nvidia shares rose 2% on Thursday after the IT company posted record second-quarter effects that beat analysts’ estimates.
The company has noted continued strength in its video game, knowledge media and professional visualization businesses, contributing to 68% year-over-year earnings growth.
Here are the key figures:
On the cryptocurrency front, Nvidia has said it expects a drop in the sale of its cryptocurrency mining processors, especially as Ethereum moves to EIP-3554, which will make the cryptocurrency necessarily unusable. continue until 2022.
Nvidia said it is continuing the regulatory process to finalize its proposed acquisition of Arm.
“Although some Arm licensees have expressed considerations or opposed the transaction and discussions with regulators are taking longer than previously thought, we are confident in the deal and that regulators deserve to recognize the benefits of the acquisition for Arm, its licensees and the industry,” said Nvidia’s chief monetary director, Colette Kress.
Here’s what three Wall Street analysts said about Nvidia’s second-quarter earnings report.
“We, the call has dispelled considerations about two key overhangs: (1) the knowledge center has slowed beyond the four quarters, however, the lion’s share of expansion will be boosted through the knowledge center, suggesting a four0% year-on-year acceleration of the 35% expansion in the third quarter; (2) the call for games is solid, as only 20% of players have followed the ray tracing generation, which has a top ASP of 50-70% and a classic and electronic sports player in base development,” BofA said.
“In the long run, we, Nvidia’s knowledge hub, can sustain the annual expansion of more than 30% through the increasing adoption of AI accelerators, the growing desire to offload DPU compute, and a possible foray into server processors,” BofA said.
Bank of America reiterated its buy score and raised its value target from $250 to $260.
JPMorgan: “We continue to see a bullish bias in earnings estimates as we outperform cy21 and cy22. “
JPMorgan reiterated its obesity score and raised its value target to $220 from $215.
Goldman Sachs: “The most productive company located to address and monetize the proliferation of accelerated computing.
“We believe the threat of a stock correction giant resulting in a loss of profits similar to what happened in 2017/2018 is limited, given that 1) the company was quick this time to introduce the crypto mining processor to meet mining demand; 2) while there appear to be tactics to circumvent the restrictions, the reduced hash rate on some GeForce SKUs has deterred miners from “accumulating” the gaming GPU source; and 3) unlike the 2017/2018 period, channel stock is low and Nvidia is not at the end of the cycle of a gaming GPU product,” Goldman said.
Goldman Sachs lately has no scoring or value target for Nvidia.