Nvidia poised to pull away from peers ahead of semiconductor earnings this week, KeyBanc says
KeyBanc believes its ambitious price target on Nvidia is justified ahead of its quarterly results on Wednesday. The firm reiterated a buy rating on Nvidia stock in a preview note on Sunday for semiconductor stocks. KeyBanc’s new price target of $375 per share, up from $320, equates to roughly 20% upside for the stock, which has already risen 114% this year. Chipmakers also reporting this week include Marvell Technology and Analog Devices. “We see NVDA as best positioned to deliver beat/raise results driven by increasing tailwinds from generative AI supported by the rollout of additional RTX40 gaming SKUs,”[ads1]; wrote analyst John Vinh. NVDA YTD mountain Nvidia stock. Vinh also highlighted Nvidia’s market dominance in the semiconductor space, thanks to the prominence and interest in artificial intelligence this year, as the main contributor to the bull case. While supply constraints for graphics processing units may hinder upside in the near term, Vinh says KeyBanc “anticipates that investors will see through these concerns.” “[W]I believe NVDA’s outsized stock position and ability to monetize growth in generative AI at 70%+ GM should warrant a meaningful premium to its semiconductor peers,” Vinh said. KeyBanc forecasts Nvidia to report $6.56 billion in revenue and an adjusted 93 cents per share Wednesday Analysts polled by FactSet estimate 92 cents per share — CNBC’s Michael Bloom contributed to this report.