NVIDIA Corporation (NASDAQ:NVDA)’s (NVDA) stock performance is being held back by investor skepticism about the sustainability of the data center business, UBS analysts wrote in a note to clients on Monday.
They believe there are more gains ahead for its stock price, though, if their 2024 and 2025 earnings per share (EPS) estimates of $12.22 and $12.48, respectively, versus the $9.60 and $11.83 Street consensus, are achievable.
“Demand still far outstrips NVDA's supply and every customer discussion we have suggests that lead times are 18+ months and not getting any shorter, with CoWoS (Chip-on-Wafer-on-Substrate) packaging capacity being a KPI (key performance indicator) to watch from our perspective,” the analyst said.
Analysts at UBS have a ‘Buy’ rating and a 12-month target price of $393.27 per share on NVIDIA stock.
Shares of NVIDIA eased 1.3% to close at $386.54 on Tuesday.
Contact Sean at sean@proactiveinvestors.com