On Tuesday, Nvidia Corp (NASDAQ: NVDA) shares traded lower as investors took profits. The stock gained 193% over the past 12 months, helped by artificial intelligence hype.
Analysts, including Wedbush Securities Analyst Matt Bryson and Oppenheimer Analyst Rick Schafer praised Nvidia as the key AI player.
Aside from AI, Nvidia continues to focus on gaming technology, introducing Nemotron-4 4B Instruct, its first digital human-based small language model.
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The innovation is likely to change the gaming experience by improving character interaction in the new multiplayer mech game Mecha BREAK, developed by Amazing Seasun Games, a subsidiary of Kingsoft Cloud Holdings (NASDAQ: KC).
The technology is optimized for GeForce RTX AI PCs and laptops and makes it easier for developers to use advanced digital human technology in next-generation games like Mecha BREAK.
Nvidia also unveiled a generative AI weather model that aims to revolutionize short-term weather forecasting. The new model, called StormCast, represents a significant advance in predicting extreme weather events like flash floods and tornadoes and is more accurate down to the kilometer scale, Axios reports.
Nvidia’s StormCast can operate at the mesoscale, allowing the solution to resolve small-scale weather systems and incorporate complex atmospheric physics, such as how thunderstorms form, intensify, and dissipate.
Analyst rating: Oppenheimer Analyst Rick Schafer reiterated his “outperform” rating for Nvidia with a price target of $150.
Nvidia trades at 29 times average value in calendar year 2026, with the five-year average being 36. Schafer highlighted the company’s best gross and operating margin profile in the group.
Nvidia remains the purest scale player in AI adoption. Schafer said AI is leading sustained structural growth in data centers as accelerator usage increases.
He noted that Nvidia’s entrenched DC AI ecosystem is central to GenAI adoption. Schafer remains a long-term buyer.
Schafer expects an uptick in the second quarter and the third quarter outlook, primarily due to continued demand for AI among cloud service providers (CSPs) and enterprises.
Lead times have normalized despite tight supply limited by advanced packaging capacity. The B100 is on track for a low-volume launch in the fourth quarter with a significant increase in the first quarter as Chip-On-Wafer-On-Substrate-L (CoWoS-L) supply improves.
The analyst expects Hopper to meet demand in the meantime. Blackwell Ultra is expected at the end of fiscal 2025, Ruben+Vera in fiscal 2026 and Ruben Ultra in fiscal 2027.
The move to rack scale leveraged Nvidia’s unique end-to-end accelerator platform for software connectivity. The analyst noted that the GB200 NVL36 and GB200 NVL72 racks further differentiate Nvidia from the competition.
Schafer forecasts second-quarter net sales and earnings per share of $28.04 billion and $0.62, respectively.
Price promotion: At last check on Tuesday, NVDA shares were trading 1.50% lower at $128.08.
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Image via Nvidia Blog
Latest reviews for NVDA
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Date |
company |
action |
Out of |
To |
|---|---|---|---|---|
|
March 2022 |
Goldman Sachs |
Re-instates |
Neutral |
|
|
February 2022 |
Summit Insights Group |
Downgrades |
Buy |
Hold |
|
February 2022 |
Mizuho |
Maintains |
Buy |
View more analyst ratings for NVDA
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This article What’s happening with Nvidia stock on Tuesday? originally appeared on Benzinga.com
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