01/05/2023 | 02:06pm EST

(MT Newswires) -- NVIDIA (NVDA) expects the gaming channel to "largely normalize" by the end of the January quarter and a solid pipeline to offset cloud capital expenses headwinds, BofA Securities said in a note to clients Thursday, citing the company's management, including Chief Financial Officer Colette Kress, during the CES tradeshow.

The company also expects solid demand for RTX 4090, 4080 and 4070 Ti graphics cards despite China/macro turmoil, according to the note.

The investment firm estimates a "normalized" quarterly end demand of $2.5 billion for gaming, compared with the current sell-in rate of $1.5 billion to $1.6 billion per quarter.

Meanwhile, the company's deployment of hardware and software technology, adoption of "new generative AI techniques" such as ChatGPT and the ramping of Hopper H100 accelerators in early 2023 could offset the "impact of decelerating spending" by cloud service providers like Microsoft's (MSFT) Microsoft Azure and Meta Platforms (META) on the company's AI products, said BofA Analyst Vivek Arya.

Price: 143.67, Change: -3.82, Percent Change: -2.59 (actual close is $142.81 today)