Nvidia (NASDAQ:NVDA) was in focus on Monday as investment firm Cantor Fitzgerald said it sees the ramp of the company’s Blackwell line of artificial intelligence accelerators further strengthening the re-acceleration in AI compute demand.
“Led by Blackwell ramp and fully de-risked China, we look for accelerated beat and raises into the October [quarter] guide and beyond,” Cantor analyst C.J. Muse wrote in a note to clients. “More specifically, we look for 2Q revs/ EPS results of $48.0B/$1.06 (cons $45.8B/$1.00) and 3Q revs/EPS guide of $55.0B/$1.25 (cons $52.6B/$1.18). After seeing deceleration of magnitude of beats since the July 2023 ‘Big-Bang’ guide, we look for re-acceleration of ‘beats’ from here into the October Q and well into CY26.”
Muse raised his price target on Nvidia to $240 from $200 and reiterated his Overweight rating.
With the recent news of the H20 being re-allowed for sale in China, Muse said it’s something of a “wild card” for Nvidia, but there should be positives coming from it.
“The major wildcard, in our view, remains around China – whereas last Q China DC revenues were completely removed for the model, but now licenses appear to have been granted in early-August, though now this could be tempered by US export tax of 15% and the Chinese government pushing back on the purchase of H20s due to security risks,” Muse explained. “So clearly lots of questions here on NVDA’s go-forward opportunity in China – but the good news is China is already completely de-risked, so any shipments would be upside to our well-above consensus estimates into CY25/26.”
Nvidia is set to report quarterly results on August 27. A consensus of analysts expect the company to earn $1 per share on $45.81B in revenue.
