Nvidia Corporation (NASDAQ:NVDA) shares may be lower Tuesday, but the chipmaker is "Livin' NVDA Loca" following another beat-and-raise quarter, analysts at Wedbush wrote.
The company’s third-quarter sales came to $18.12 billion, more than triple what it reported in the year-ago quarter and well above Street expectations of $16.18 billion.
Its stock is up 240% year-to-date, and Wedbush doesn’t see Wall Street’s fascination with the company slowing down anytime soon.
“We believe NVDA is set up for at least another quarter or two of similar results as demand for GPUs continues to outpace supply, a situation we see as unlikely to shift through [the first quarter of 2024] or later,” the analysts wrote.
“The question rather is will there be some point in 2H'24 or beyond, where data center GPU backlog for training gets worked down and NVDA sees revenues pause or even decline (before then resuming growth again),” they added. “NVDA's answer to this question would seem to be a resounding ‘Hell no!’"
However, Nvidia did note that its sales to China and other countries would likely decline due to export restrictions. While this represents "the single largest risk to NVDA’s continued steady growth through CY2024," according to Wedbush, the firm expects any decline to be offset by growth in other areas.
Wedbush reiterated its $600 price target and Outperform rating. Shares of Nvidia fell 3.2% Wednesday morning to $483.22.
“We appreciate the opportunities NVDA is pointing to and see a bright longer term future for the company,” the analysts wrote. “At the same time, we are choosing to use NVDA's substantial upside to effectively de-risk our forward model and price target in case a short term reset does eventually manifest.”
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