Nvidia reported $6.05 billion in revenue for the fiscal fourth quarter and adjusted EPS of $0.88, edging out the Wall Street consensus. It forecast $6.5 billion in sales for the upcoming quarter.
Analysts responded positively both to Nvidia's results and to growth in its data-center business, with a slew of reiterated or upgraded ratings coming after the report. That vertical is home to most of Nvidia's sales of GPUs for artificial intelligence and grew 11% year-over-year."AI adoption is at an inflection point.
Nvidia's A.I. play is "accelerating in a way that will have disruptive implications" for both its competitors and "the world at large," Rosenblatt Securities' Hans Mosesmann said in a Wednesday note.by two-thirds highlights a "multi-generational shift we have never witnessed," Mosesmann continued, reiterating a Buy rating and setting a $320 price target.
Credit Suisse's Chris Case offered a similarly optimistic note, calling Nvidia a stock "difficult not to own" and maintaining it as a sector top pick. That assessment, Case wrote, was driven by "a combination of derisked gaming estimates coupled with what we believe is the strongest growth potential in semis from AI/datacenter." Case hiked Nvidia's price target from $210 to $275.
And in an about-face, Goldman Sachs' Toshiya Hari upgraded Nvidia to a Buy rating and set a $275 price target. "In hindsight, we acknowledge that our decision to remain on the sidelines in anticipation of a pullback in the company's fundamentals was wrong," Hari wrote in a Wednesday morning note, citing Nvidia's "disciplined expense management" and accelerating A.I. adoption.