Source: Zhitong Finance
Nvidia will announce its Q1 results for fiscal 2023, which ends on April 30, on Thursday morning, Beijing time. Bank of America analyst Vivek Arya has a “buy” rating on Nvidia with a $320 price target. Arya believes that Nvidia’s cloud computing and gaming businesses are expected to continue to grow.
The semiconductor industry as a whole remains strong, Arya said, but that may be due to “a supply crunch” that investors fear is a “calm before a potential 2023 recessionary storm.”
Regarding the recent decline in semiconductor stocks, Arya noted that this “seems more to be a re-valuation based on a new rate mechanism than a structural shift in demand drivers.” Arya said Nvidia and other cloud-related companies , such as AMD (AMD.US), Marvell Technology (MRVL.US) and Broadcom (AVGO.US) are all “facing elastic demand.”
Other semiconductor companies facing elastic demand include companies related to the automotive industry, such as ON Semiconductor (ON.US), and semiconductor equipment companies, including Kelei (KLAC.US), Applied Materials (AMAT.US) and others.
On Monday, Morgan Stanley said Marvell Technologies and Nvidia were on track to report strong quarterly results this week, underscoring their strong growth in telecoms, networking and cloud computing.
Bernstein analyst Stacy Rasgon said he was not optimistic about Nvidia’s Q1 performance and lowered the target price from $325 to $225, still maintaining an “outperform” rating.
Editor/Corrine
This article is reprinted from: https://news.futunn.com/post/15867638?src=3&report_type=market&report_id=206608&futusource=news_headline_list
This site is for inclusion only, and the copyright belongs to the original author.