AI powerhouse Nvidia Corp.
Encouraging Results: Key Banc Capital Markets analyst John Vinh, who has an Overweight rating on the stocks, said the first-quarter results and the second-quarter guidance were meaningfully above expectations. The upside came primarily from the Data Center business, which reported year-over-year revenue growth of 427%, he said. Strength was also evident in the enterprise, consumer internet, and cloud customers (45% of revenue), he added.
Within the enterprise, auto companies such as Tesla are expected to be the largest vertical this year, potentially driving several billion in revenues, Vinh said.
The analyst expects sovereign AI deployment to start to inflect, contributing high-single-digit billion-dollar revenue this year.
Delving into the company's product updates, the analyst noted that H200 demand was growing throughout the first quarter, with shipments starting in the fiscal second quarter. China-compliant SKU, namely H20 began shipping, and the first-iteration of Blackwell accelerators, namely B100, was in full production and will begin shipping in the second quarter and ramping in the third quarter, he noted. Blackwell's demand notably outstripped its supply into next year, he added.
Vinh expects near-term growth to be driven by the ramp of H200 and initial contributions from B100. "We're encouraged with the strong results....and view NVDA as best positioned in semis to benefit from Generative AI," he said.
Vinh raised the price target for the shares from $1,200 to $1,300, suggesting roughly 37% upside potential.
Explosive DC Growth: GraniteShares' Paul Marino lauded the company for once again beating the highest expectations on both the top and bottom lines.
"Data Center revenues exploded as the AI revolution is real and Nvidia is the beneficiary," he said.
The 120% dividend hike and the 10-for-1 stock split announcement, Marino said, reflected management confidence.
Nvidia shares rose 6.06% to $1,007.00 in premarket trading on Thursday, according to Benzinga Pro data.
