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meanwhile Nvidia (NASDAQ:NVDA) There are still three weeks until Q4 results, but Bank of America’s Vivek Arya, a 5-star analyst ranked in the top 1% of Street equity professionals, says NVIDIA’s Q4 2023 We confidently expect the company to deliver modest but noteworthy results in both the quarter and fourth quarter. Revenue and Forecast for Q1 2024.
Staring into his crystal ball, Aria first declared that NVIDIA would report quarterly revenue of $500 million to $1 billion more in the fourth quarter than the $20 billion called for by Wall Street consensus. did. However, analysts were quick to start doing damage control on this presumed “beat,” stating that “a 3-5% beat pales in comparison to the 10%/22% beat/raise of previous quarters; “This will probably disappoint some bulls.” But this smaller beat is actually a good thing, as it creates an opportunity for Nvidia to continue exceeding expectations in the future.
Yes, that’s right. First, Aria says there is consensus that Nvidia will sell $20 billion worth of computer chips. But apparently there’s also a consensus that Nvidia will sell computer chips worth well over his $20 billion. So if Nvidia only sells his $21 billion (so he’s $1 billion more than the initial consensus), some will be disappointed that it didn’t sell. Don’t go beyond the second consensus.
But for Alia, it seems like she’s very happy with her $1 billion win. He already expects that to happen, reaffirming his Buy rating on NVDA stock and raising his price target by $100 to $800 per share. This means an upside potential of about 21% from current levels. (Click here to see Arya’s track record)
So what’s the source of this optimism? By all appearances, Nvidia chips tailored for artificial intelligence capabilities are selling like hotcakes, Alphabet is integrating AI into search, Equipped with AI in its phones, Meta has developed new “AI-based advertising tools” and Microsoft credits six of its advertising tools as being created by AI. Revenue increased his 18 percentage points last quarter, and Nvidia itself is teaming up with everyone from Dell to HP to SAP to VMware in new partnerships.
Looking ahead to 2025, Arya notes that NVIDIA stock, despite growing earnings at a compound annual rate of 45%, is selling for just 25 times next year’s earnings, resulting in a It says the PEG ratio is much lower, at less than 0.6. It exceeds the PEG ratio of 1.0, which is a touchstone for value investors.
All in all, it’s clear that Wall Street likes what it sees here. This stock has 38 recent analyst reviews, including 34 buy ratings to 4 hold (i.e. neutral), with a consensus rating of Strong Buy. It has become. (look NVDA stock price prediction)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
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