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Re: The analysts' reactions and targets from the GTC mtg; I'll try to record them hereBofA/Merrill: GTC underscores AI/Gaming dominance amidst n-t macro headwinds Reiterate Rating: BUY | PO: 205.00 USD | Price: 131.76 USD Full stack solution of hardware, software, and services Maintain Buy following NVDA’s GPU Tech Conference (GTC’22) where CEO Jensen Huang outlined a highly innovating (though well telegraphed in media reports prior) stack of 4nm products in gaming (Ada Lovelace 4080/90), data center/omniverse and edge (autos/robotics). No financial updates. Incremental takeaways: (1) Ada Lovelace launching in OctQ and ramping into CY23, MSRP 7%-29% above their Ampere counterparts; (2) a more powerful Thor SoC for edge apps that replaces previously announced Atlan chip; and (3) Omniverse Cloud which provides NVDA the ability to deliver services over their own cloud. Importantly, Omniverse Cloud represents an infraas-a-service opportunity and extends NVDA’s software/services revenue run-rate to hundreds of millions. NVDA also underscored its ambitions in becoming a system-level full stack provider, with the Hopper HGX systems now in full production (some revenues in OctQ, and a full ramp in JanQ), and the Thor SoCs enabling end-to-end automotive platforms via hardware-software combination. While near-term inventory concerns in Gaming and Enterprise remain, NVDA believes two quarters of Ampere inventory digestion has paved the way for a healthy Ada Lovelace launch. We also note a majority of installed base is still non-RTX, and highlight the potential for upgrade. NVDA’s ecosystem of 3.5mn developers and 550 SDKs, combined with its full-stack products/services approach should help overcome near-term macro headwinds. |
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Msg # | Subject | Author | Recs | Date Posted |
40018 | Re: The analysts' reactions and targets from the GTC mtg; I'll try to record them here | delt1970 | 0 | 9/22/2022 9:08:03 AM |