There is no other stock as hot as Nvidia Corporation (NVDA) right now as the share price continued to break record high after the announcement of its 4Q23 earnings on Wednesday that beat all expectations in the market as chips for computing and generative AI showed no sign of slowing down.
Earnings per share for the fourth quarter was $5.16, up 765% YoY and also beating expectations of $4.60 per share.
Nivdia said revenue was $22.1 in the final quarter, which was also above analysts’ expectations for $20.4 billion. It was up 22% from Q3, up 265% from a year ago. Meanwhile, Data Center revenue was $18.4 billion, up 27% from Q3, up 409% from 2022.
Nvidia recorded full-year revenue of $60.9 billion, up 126%.
The share price rose 16.40% to close at $785.38 per share on Thursday. Its P/E is now over a hundred.
Following the upbeat results and prior to the opening bell on Thursday, global brokers all raised target price for the leading GPU producer for AI. Here is the list.
KeyBanc raised target price to $1,100, saying “Strong Gen AI Demand Improving Supply Drives Beat and Raise Results”
JPMorgan raised target price to $850, saying “Demand Continues to Outstrip Supply Through CY24”
Goldman Sachs raised target price to $875, saying “Robust Gen AI infrastructure”
Truist Securities raised target price to $911, saying “Buy NDA for persistent AI leadership”
Morgan Stanley raised target price to $795, saying “shines vs. high expectations”
Wolfe Research raised target price to $900
Bernstein raised target price to $1,000, saying “Mo’ money, no problems”
Stifel raised target price to $910, saying “AI Growth Continues to Impress”
Melius raised target price to $1,000
BofA Securities raised target price to $925
Cantor Fitzgerald raised target price to $900
HSBC raised target price to $880
Citi raised target price to $820
DA Davidson and Deutsche Bank also raised target prices, but their $620 and $720 targets were lower than the current trading price.
Meanwhile, UBS lowered its target price to $800, saying that AI is still early innings.
Goldman Sachs wrote in a note, expecting that despite more than three folds growth in data center revenue in FY2024, it expected another two times growth in FY2025, saying that not only sustained growth in Generative AI infrastructure spending by the large CSPs and consumer internet companies, but also increased development and adoption of AI across enterprise customers representing various industry verticals and, increasingly, sovereign states.The multinational investment bank also sees new product introduction in the near term, including the H200, Spectrum-X and B100.
Morgan Stanley stated that it had never seen more than $2 billion of upside to quarterly revenue guidance until Nvidia announced it a few quarters ago as it has become a routine during the AI surge.
Despite Morgan Stanley raising numbers sharply in its preview a couple of weeks before the earnings results, Nvidia still beat those numbers. 4Q revenue at $22.1 billion also beat Nvidia’s own guidance of $20 billion and Morgan Stanley’s $21 billion expectations.
