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4 Big Takeaways From Nvidia's Sell-Side Meeting

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4 Big Takeaways From Nvidia's Sell-Side Meeting

Shares of NVIDIA Corporation (NASDAQ: NVDA) hit a new all-time high of $126.79 on Thursday after the company followed up its first-quarter earnings report with a sell-side analyst meeting that for the most part impressed the Street.

Here is a summary of what some of Wall Street's top analysts were saying after the event.

UBS: New Chips, Future Growth Initiatives

UBS's Stephen Chin left the presentation with a positive impression on Nvidia's after seeing the company's latest generation GPU chip called Volta, the introduction of new DGX supercomputer products, a new customer win from Toyota Motor Corp (ADR) (NYSE: TM) and new robotics initiatives with its Isaac robotics simulator.

Future growth initiatives in the auto and infotainment sectors are important to the company's outlook today but the analyst is expecting more meaningful revenues from Level 2/3 systems based on Drive PX2 Parker platforms in the coming years. Also, the company's artificial intelligence software platform represents a competitive advantage that is sticky and a key component of achieving higher auto margins over the long term.

Shares remain Buy rated with an unchanged $135 price target.

Deutsche Bank: Long-Term Initiatives Already Priced In

Deutsche Bank's Ross Seymore highlighted Nvidia's stated total addressable market of $30 billion for data centers and $8 billion for the auto market. The analyst noted that while the company's successes as of late can't be ignored, the size of the market seems "optimistic."

Seymore added that even if Nvidia sees tremendous success in these two runways then this outcome is already factored into the stock at current valuations.

Shares remain Hold rated with an unchanged $105 price target.

JPMorgan: Addressing Growth Opportunities

JPMorgan's Harlan Sur stated that Nvidia is addressing its large growth opportunities ahead by leveraging its GPU architecture across various platforms while also providing a differentiated performance compared to competitive technologies.

Sur highlighted Nvidia's CEO Jen-Hsun Huang's presentation, which focused on the core advantages of its artificial intelligence and Volta platform that is greatly improved from the prior Pascal platform.

Overall, Nvidia is well positioned to capitalize on the growing trends in data center adoption, artificial intelligence, autonomous vehicles and gaming. Also, the company provided its outlook through 2025, which "paint a picture of a long runway of growth," the company didn't provide any updated financial guidance.

Shares remain Neutral rated with an unchanged $122 price target.

Loop Capital: Leader In AI Revolution

Loop Capital Markets' Betsy Van Hees left the presentation "incrementally more confident" Nvidia's very-long-term story is merely in the "early innings."

The analyst's confidence stems from Nvidia's presentations which focused on autonomous driving, deep learning, robotics, artificial intelligence and the new partnership with Toyota. Van Hees did, however, express some disappointment in the lack of financial guidance, which was something she was looking for at the Analyst Day.

Nevertheless, Van Hees remains confidence on Nvidia's positioning to drive year-over-year growth as the company is considered an end-to-end solutions provider of hardware and software for artificial intelligence, automotive and data centers.

Shares remain Buy rated with a price target boosted from $129 to $137.

Related Links:

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Even Beer Companies Use AI And Machine Learning Technologies

Latest Ratings for NVDA

DateFirmActionFromTo
Sep 2020Craig-HallumMaintainsHold
Sep 2020NeedhamMaintainsBuy
Sep 2020JefferiesMaintainsBuy

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