Nvidia in focus as Cantor sees Blackwell ramp adding to re-acceleration in AI compute

[Nvidia Corporation building in Taipei, Taiwan.]
BING-JHEN HONG

* Nvidia (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]) was in focus on Monday as investment firm Cantor Fitzgerald said it sees the ramp of the company's Blackwell line of artificial intelligence accelerators further strengthening the re-acceleration in AI compute demand.
* “Led by Blackwell ramp and fully de-risked China, we look for accelerated beat and raises into the October [quarter] guide and beyond,” Cantor analyst C.J. Muse wrote in a note to clients. “More specifically, we look for 2Q revs/ EPS results of $48.0B/$1.06 (cons $45.8B/$1.00) and 3Q revs/EPS guide of $55.0B/$1.25 (cons $52.6B/$1.18). After seeing deceleration of magnitude of beats since the July 2023 'Big-Bang' guide, we look for re-acceleration of 'beats' from here into the October Q and well into CY26.”
* Muse raised his price target on Nvidia to $240 from $200 and reiterated his Overweight rating.
* With the recent news of the H20 being re-allowed for sale in China, Muse said it's something of a “wild card” for Nvidia, but there should be positives coming from it.
* “The major wildcard, in our view, remains around China – whereas last Q China DC revenues were completely removed for the model, but now licenses appear to have been granted in early-August, though now this could be tempered by US export tax of 15% and the Chinese government pushing back on the purchase of H20s due to security risks,” Muse explained. “So clearly lots of questions here on NVDA’s go-forward opportunity in China – but the good news is China is already completely de-risked, so any shipments would be upside to our well-above consensus estimates into CY25/26.”
* Nvidia is set to report quarterly results on August 27. A consensus of analysts expect [https://seekingalpha.com/symbol/NVDA/earnings/estimates?period=quarterly] the company to earn $1 per share on $45.81B in revenue.

MORE ON NVIDIA

* Nvidia's Q2 Preview: The GB300 Surprise Few See Coming [https://seekingalpha.com/article/4814456-nvidia-stock-q2-preview-the-gb300-surprise-few-see-coming]
* Nvidia Stock Might Not Be As Overpriced As First Thought [https://seekingalpha.com/article/4814050-nvidia-stock-might-not-be-as-overpriced-as-first-thought]
* Nvidia: The Lone $4T Market-Cap Stock Is Still A Cheap Growth Play [https://seekingalpha.com/article/4814042-nvidia-the-lone-4t-market-cap-stock-is-still-a-cheap-growth-play]
* Nvidia’s $4.5T valuation now tops the entire Russell 2000 Index by $1.5T [https://seekingalpha.com/news/4486468-nvidias-45t-valuation-now-tops-the-entire-russell-2000-index-by-15t]
* Stocks retail investors like the least [https://seekingalpha.com/news/4486336-stocks-retail-investors-like-the-least]