Chip giant Nvidia (NASDAQ:NVDA) will report its first-quarter financial results on Wednesday, May 24. Rosenblatt Securities analyst Hans Mosesmann expects NVDA to meet or exceed expectations in Q1 and Q2 due to the growth in the Data Center and Gaming segments. Mosesmann is bullish about NVDA, and his price target of $320 implies about 10.52% upside potential from current levels.
It’s worth highlighting that Nvidia is on fire in 2023, gaining about 98% year-to-date. The popularity of OpenAI’s ChatGPT and NVDA’s dominant positioning in the AI (Artificial Intelligence) space have given a boost to its stock price.
Semiconductor stocks like NVDA suffered due to the moderation in end-market demand and inventory issues. However, the buzz around AI and the expected recovery in the Data Center and Gaming markets are likely to support NVDA stock.
Wall Street expects NVDA to report revenue of $6.52 billion, which is in line with management’s expectations. Moreover, it reflects a sequential improvement from the previous quarter. During the Q4 conference, the company announced that quarter-over-quarter growth across each of its target markets and strong momentum in the Data Center and Gaming would lead to a sequential improvement in sales.
Along with sales improvement, Mosesmann lauded NVDA’s positioning in the AI space. In a note dated May 10, the analyst said that he sees NVDA “driving the biggest technology inflection the world may have ever seen in transformational AI everywhere and in everything.”
Also, NVDA’s EPS is expected to improve sequentially in Q1. Analysts expect NVDA to post earnings of $0.92 a share in Q1, compared to $0.88 in Q4. Nevertheless, EPS could decline on a year-over-year basis, reflecting tough comparisons.
What’s the Prediction for NVDA Stock?
NVDA’s leadership in the AI segment and expected recovery in end-market demand are positives, keeping analysts optimistic about its prospects. NVDA stock has 30 Buy, seven Hold, and one Sell recommendations for a Strong Buy consensus rating.
However, due to the recent growth in NVDA stock, analysts’ average price target of $288.24 implies no upside potential.