Market Overview

Expectations Mount For Nvidia; Analyst Raises Target To $190 Ahead Of Earnings

Share:
Expectations Mount For Nvidia; Analyst Raises Target To $190 Ahead Of Earnings
Related NVDA
Bank Earnings To The Rescue? Market Seeing Some Green After Strong Results
Investor Movement Index September Summary
Nvidia Sees Its Composite Rating Rise To 96 (Investor's Business Daily)

Graphics chipmaker NVIDIA Corporation (NASDAQ: NVDA), which is giving chip rivals Intel Corporation (NASDAQ: INTC) and Advanced Micro Devices, Inc. (NASDAQ: AMD) the jitters, is scheduled to report its fiscal third-quarter results after the market close on Thursday.

See Benzinga's preview of the results here.

The Analyst

Deutsche Bank's semiconductor analyst Ross Seymore previewed Nvidia's results.

The Rating

Deutsche Bank maintained its Hold rating Nvidia but raised its price target from $145 to $190, rolling forward its valuation on its upwardly revised earnings per share estimates.

The Thesis

Nvidia is likely to report a solid Q3, with revenues estimated at $2.41 billion, according to Seymore. This compares to the company's guidance of $2.35 billion, and the consensus estimate of $2.37 billion.

That said, recent strength in PCs and cryptocurrency could to lead to incremental upside, Seymore added.

Among segments, Deutsche Bank expects gaming revenues, accounting for 57 percent of sales, to increase 16 percent sequentially, and data center, accounting for 19 percent of sales, to rise by 10 percent.

The firm angles for sequentially flat auto revenues, a 5 percent drop in Proviz and a 17 percent decline in OEM/other revenues, which comprise crypto-related sales. Specifically, the firm expects crypto-related sales to plunge 42 percent sequentially.

The firm models GAAP earnings per share of 97 cents, ahead of the consensus of 95 cents. To reflect better gaming revenues, Deutsche Bank raised its F4Q and 2019 estimates.

Price Action

At time of writing, Nvidia shares were down 1.76 percent at $208.30. The stock has nearly doubled in the year-to-date period, following up on its stellar run in 2016.

Image Credit: yoggy0 from Yokohama, Japan (SIGGRAPH Asia 2009) [CC BY 2.0], via Wikimedia Commons

Latest Ratings for NVDA

DateFirmActionFromTo
Sep 2018KeyBancInitiates Coverage OnSector Weight
Aug 2018OppenheimerUpgradesPerformOutperform
Aug 2018Stifel NicolausMaintainsHoldHold

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Ross SeymoreAnalyst Color Price Target Previews Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (INTC + AMD)

View Comments and Join the Discussion!
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Snap Falls Flat: Here's What Wall Street Thinks Of Snapchat's Dismal Q3

Upcoming Earnings: Macy's Stock Remains Close To Its 52-Week Low Ahead Of Tomorrow's Quarterly Results