Piper Sandler raises NVIDIA data center revenue estimates ahead of earnings
Piper Sandler analysts raised their data center estimates for NVIDIA (NASDAQ:NVDA) for the October and January quarters ahead of the company's earnings release next week.
The firm said in a note to clients on Friday that with its new model, it now forecasts total data center revenues to be ~$42B in FY2024 and $67.4B in FY2025.
«We do not see an impending inventory digestion for the data center segment over these next two quarters through the early stages of CY24 given the robust demand from customers still looking to be allocated GPUs from the company,» wrote the analysts, who have an Overweight rating and a $620 price target on the stock.
«As such, the primary concern for the company remains the supply of GPUs. We also feel disruptions related to China bans will be minimal as China clients were relatively lower contributors to generative AI demand versus the U.S. hyperscaler cohort,» they added.
The analysts also stated that similar to 2022, NVDA should be able to design around the China restrictions, and as a result, they see minimal impact on future guidance.
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