Nvidia Tops Estimates With Solid Quarter: Here's What Wall Street's Saying

Nvidia analysts were mostly bullish on the chipmaker following its April quarter earnings.

Nvidia NVDA shares may have fallen after the company's fiscal first quarter earnings release after the closing bell Thursday, but were rebounding nicely on Friday as the analyst community was still mostly bullish on the semiconductor maker. 

Nvidia shares were rising 3.4% to $362.84 Friday morning.

Nvidia said non-GAAP earnings for the three months ending on April 26 were pegged at $1.80 per share, more than double last year's tally and firmly ahead of the Street consensus forecast of $1.69 per share. Group revenues, led by an 80% year-on-year increase in data center chip sales, rose 38.7% to a forecast-beating $3.08 billion.

Here's what analysts had to say about the quarter. 

RBC Capital (Outperform, $385 PT unchanged)

NVIDIA recently ramped up its efforts within the automotive segment, as the car is transitioning from basic computing (turn signals, radio, windshield wipers, and other basic functions) to complex visual and software needs. Beyond the addition of sensors and connected devices, we note that display technology should also increase in the future, which creates the need for more computing power.

-Mitch Steves

Credit Suisse (Outperform, $425 PT unchanged)

We raise our FY21/22/23 EPS to $8.25/$9.90/$11.50 from $7.89/$9.70/$11.10 (Street $7.48/$9.06/$10.41). In addition to solid gaming franchise, we see F1Q/F2Q as confirmation of our Accelerating Compute Thesis and would note an important F2Q milestone - Data Center (47% of Rev) will be larger than Gaming (38% of Rev) for the first time ever.

We continue to see NVDA as the best secular growth stock in Semis with an almost open-ended total addressable market protected by first movers advantage and wide/deep moats in both silicon AND software.

-John Pitzer

Deutsche Bank (Hold, PR raised from $300 to $315)

We are raising our P/T to $315 from $300 prior on a higher target multiple as the co mpany continues to execute on Data Center platform growth. Overall, we remain impressed with NVDA's ability to address a wide array of rapidly growing sectors (AI, Datacenter, Gaming, ADAS/AV etc.) and expect optimism on these vectors to remain high in FY21. However, we believe much of this goodness is already reflected in NVDA's share price.

-Ross Seymore

JPMorgan (Overweight, PT raised from $305 to $405)

We believe NVIDIA continues to execute across all segments. While 1H is typically seasonally weaker than 2H, we expect solid demand in PC gaming to be a strong revenue driver for the company, offsetting PC OEM, which is in secular decline. We expect the data center segment to grow strongly as hyperscale customers continue to embrace GPU-accelerated deep learning for processing large data sets. We are encouraged by strength in the automotive and enterprise segments as well, although strong adoption of autonomous driving in the market remains to be seen.

-Harlan Sur

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