Nvidia (NASDAQ:NVDA) reported Q2 results yesterday with slower data center growth than the Street expected and a reliance on the shaky cryptocurrency mining market.
Loop Capital raises Nvidia’s price target from $137 to $181 and reiterates a Buy rating.
Analyst Betsy Van Hees cites the modest 2% sequential data center growth and higher Q3 operating expenses but expects the data center to return to double-digit growth next quarter and sees the pullback as a good entry point.
Deutsche Bank raises the price target from $105 to $145 and reiterates a Hold rating.
Analyst Ross Seymore says that the company had little room for error due to trading at 40x estimated 2018 EPS and while he remains optimistic about data center recovery, Seymore thinks Nvidia is already fully valued compared to the competition.
Stifel analyst Kevin Cassidy raises Nvidia’s price target from $93 to $110 and reiterates a Hold rating.
Cassidy says investors were disappointed about the cryptocurrency reliance but wasn’t surprised about the data center results, saying that hyperscale data center revenue is “notoriously lumpy and investors should not expect steady sequential growth in this business.”
Source: Bloomberg First World
Nvidia shares are down 6.43% premarket.
Previously: Nvidia shares -7.5% after Q2, guidance beats (Aug. 10)