Nasdaq NVDA Nvidia

Wednesday will see Nvidia (NVDA) step up to the earnings plate, when the chip giant will release its April quarter’s (F1Q) financials. Ahead of the anticipated print, Oppenheimer’s Rick Schafer has made a list of what to look out for.

Led by gaming, Schafer sees “broad upside vs. original $5.3B outlook,” and thinks results will be better than the Street’s forecast of $5.4 billion in sales and EPS of $3.28, while guidance for the July quarter should also improve on the $5.5 billion/$3.28, revenue and EPS estimates, respectively.

“Supply tightness,” however, will put a cap on the upside, and Schaffer also believes that until the end of the year, “constraints likely persist, though gradual supply improvement supports continued Q/Q growth.”

Looking at the company’s main revenue sources, Schafer expects the Gaming division to grow by more than 100% year-over-year, compared to the 67% year-over-year uptick in F4Q, “led by robust GeForce RTX demand, which continues to outstrip supply.”

Although the company has aggressively pushed to boost supply, channel inventories “remain lean,” and the analyst notes that Nvidia remains the leader in high-performance PC gaming where “content/performance/console are driving outsized demand.”

Additionally, the crypto boom and its impact on GPU sales alone will drive an extra $100 million of upside – sales are expected to come in now at $150 million vs. $50 million originally.

The other main breadwinner, Data Center, is expected to build on the A100’s momentum, and with the addition of Mellanox should increase by 85% year-over-year.

“We see hyperscaler spending accelerating into 2Q/2H and up 15% for CY21,” the 5-star analyst said. “NVDA share gains, particularly in AI inference, lead above-market growth.”

Elsewhere, while Nvidia’s Automotive segment showed a 1% drop in F4Q, Schafer estimates 6% growth in the quarter. The analyst has high hopes for the segment and calls it the “next major growth pillar.”

Inflection is anticipated by 2023/2024, and by 2027, the company expects the segment to generate revenue of $8 billion. The analyst also believes last year’s revenue sharing subscription deal with Mercedes will lead to similar deals with other auto OEMs.

All in all, Schaffer rates NVDA an Outperform (i.e. Buy) along with a $700 price target. The implication for investors? Upside of 12%. (To watch Schafer’s track record, click here)

It’s safe to say Nvidia remains a Wall Street favorite. Based on 22 Buys vs. 2 Holds, the stock boasts a Strong Buy consensus rating. Given the average price target stands at $685.43, the shares are anticipated to appreciate ~10% over the coming months. (See NVDA stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in NVIDIA Corp (Symbol: NVDA), where a total volume of 225,134 contracts has been traded thus far today, a contract volume which is representative of approximately

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Wall Street's main indexes advanced on Monday, with the Nasdaq rising 1.5%, as investors flocked to rate-sensitive technology shares while gearing up for key inflation readings later this week.

In trading on Monday, the iShares PHLX Semiconductor ETF is outperforming other ETFs, up about 2.3% on the day. Components of that ETF showing particular strength include shares of Nvidia, up about 4.2% and shares of Applied Materials, up about 4% on the day.

Wall Street's main indexes gained on Monday, with the Nasdaq up about 1%, as investors flocked to lagging technology shares, while gearing up for key inflation readings later this week.

Nvidia Corporation (NVDA) announced that the board has declared a 4 for 1 stock split in the form of a stock dividend to make its shares more accessible to a larger number of employees and investors.

The proposed split will increase the chipmaker's outstanding common shares to 4 billion. Shares of the company jumped 2.6% to close at $599.67 on May 21.

Nvidia is a global technology company that designs and manufactures computer graphics processors, chipsets, and related multimedia software.

The split is conditional on approval from shareholders at the company’s Annual Meeting to be held on June 3. Upon approval of the split, each shareholder of Nvidia as of June 21, will receive a stock dividend of 3 additional common shares for every share held. The shares are to be distributed after the close of trading on July 19, and trading on the newly split shares will begin on July 20. (See Nvidia stock analysis on TipRanks)

In its most recent Q4 earnings report, the company reported full-year 2021 revenue and earnings of $16.68 billion and $10 per share, up 53% and 73% year-over-year respectively.

Anticipating a robust performance in the upcoming Q1 report, Oppenheimer analyst Rick Schafer maintained a Buy rating on the stock with a price target of $700, which implies 16.7% upside potential to current levels.

Schafer said, “Nvidia has transformed from a graphics company to becoming a premier leading AI computing platform company. The GPU was initially used to create graphics for video games and film. Today, its parallel processing capabilities, supported by thousands of computing cores are essential for deep learning AI algorithms in data centers. Through its Mellanox acquisition, NVDA expanded its DC footprint from AI-accelerators to providing highspeed networking interconnects. We see several structural tailwinds driving sustained outsized top-line growth: gaming, data center/ AI accelerators, and autonomous vehicles.”

Nvidia’s shares have gained 72% over the past year, while the stock still scores a Strong Buy consensus rating based on 24 Buys and 2 Holds. The average analyst price target is $685.43, which implies 14.3% upside potential to current levels.

TipRanks data shows that financial blogger opinions are 92% Bullish on NVDA, compared to a sector average of 69%.

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