|
|
|
|
||
Re: The analysts' reactions and targets from the GTC mtg; I'll try to record them hereJ.P. Morgan: Summary Investment Thesis and Valuation Investment Thesis 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. We anticipate significant upside in the shares, driving our Overweight rating. Valuation Our December 2023 price target of $220 assumes that NVIDIA trades at 28-32x applied to $8.5 of earnings power in CY25, discounted back to CY23 assuming a 12% discount rate. Our outlook of $8 of earnings power assumes the team will be monetizing an incremental ~$11B of auto revenue pipeline and an incremental $3B of software, licensing, and subscription revenues over the next 4-5 years. With our view of significant upside potential in shares, we are Overweight NVDA. |
return to message board, top of board |
Msg # | Subject | Author | Recs | Date Posted |
40021 | Re: The analysts' reactions and targets from the GTC mtg; I'll try to record them here | delt1970 | 0 | 9/22/2022 9:22:15 AM |