Citi Comments on NVIDIA (NVDA) Earnings, Offers Focus Points Before The Conference Call

Citi analyst Atif Malik reiterated a Buy rating and $575.00 price target on NVIDIA (NASDAQ: NVDA)

The analyst comments "Fundamentals: NVDA reported Jan-Q revs/non-GAAP EPS (ex-SBC) of $22.1B/$5.16 vs. our $20B/$4.58 (ex-SBC) and Street’s (FactSet) $20.4B/$4.59 and guided Apr-Q revenue to $24B (at MP) vs. our $20B and Street’s $21.5B. Higher Hopper GPU shipments coud be highlighted as the primary driver of this quarter’s sales and margin outperformance. Jan-Q non-GAAP GM of 76.7% was 120 bps higher than Citi’s 75.5% and 130 bps above Street’s 75.4%. Similarly, non-GAAP GM Apr-Q guide of 77% is 220 bps and 130 bps above Citi’s and Street’s 74.8% and 75.7% estimates, respectively. Oct-Q Segments Sales Results: – Data Center sales rose an impressive 27% Q/Q vs. Citi’s/Street’s +14%/+15%. – Gaming revenue was flat Q/Q vs. Citi’s/Street’s -8%/-3%. – Pro Visualization sales increased by 11% Q/Q vs. Citi’s/Street’s +6%/+4%. – Auto sales were up 8% Q/Q vs. Citi’s/Street’s +3%/+6%. Going into the earnings call, investors will be focused on… 1) Any qualitative or quantitative update to the AI accelerator TAM. 2) Broad data center sales’ sustainability and any additional data points from Gen AI applications/products demonstrating demand longevity. 3) Changes to the supply dynamics, if any. 4) Future plans to offer custom chips in addition to generalized products. 5) Progress on the goal to introduce U.S restriction-friendly AI chips."

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $694.52 yesterday.

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