Goldman Sachs analyst Toshiya Hari maintained a Buy rating on Nvidia Corp
Hari expects Nvidia's 3Q results and 4Q outlook in its core Data Center segment to illustrate the ongoing shift in wallet share away from general-purpose computing (i.e., CPU) in favor of accelerated computing (i.e., GPU).
For context, on a YTD basis, CY23 Street revenue expectations for Nvidia's Data Center segment have increased by 122%.
In comparison, expectations for AMD's
From a competitive standpoint, Hari expects Nvidia to maintain its position as the industry standard given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate.
In the near term, Hari expects the company to deliver upside to his 3Q and 4Q Data Center revenue estimates of $12.4 billion (+20% Q/Q) and $13.6 billion (+10% Q/Q), respectively, on marginally better supply.
Revenue momentum (i.e., Y/Y growth) at the major Add-In Board (or AIB) manufacturers in Taiwan, including Micro-Star International (MSI), Gigabyte, and ASRock, have improved over the past few quarters.
In the near term, Hari model 3Q and 4Q Gaming revenue of $2.82 billion (+14% Q/Q, +79% Y/Y) and $2.94 billion (+4% Q/Q, +61% Y/Y), respectively
The analyst projects 3Q revenue and EPS of $16.08 billion (consensus $16.11 billion) and $3.45 (consensus $3.35). He expects 4Q revenue and EPS of $17.46 billion ($17.78 billion) and $3.81 (consensus $3.73).
Price Action: NVDA shares traded higher by 1.95% at $495.84 on the last check Tuesday.
